Australian Rare Earths Miner Reports 74 Percent Drop in Profit

Rare earths miner Lynas has reported a 74 percent decline in net profit after tax in the first half of the 2024 financial year. Lynas produces rare earths Neodymium and Praseodymium (NdPr) which are used in powerful magnets for electric vehicles, wind turbines, electronics, appliances, and technologies. In the first half of the 2024 financial year, Lynas reported a net profit after tax of $39.5 million (US$25.9 million), down from $150.1 million in the first half of 2023. The average domestic price of NdPr fell from US$60.4 (AU$92.2) per kilogram in June 2023 to US$56 per kilogram in December 2023 amid a construction downturn in China. “Rare earth market prices continued to be subdued due to low demand in China, especially in the appliance sector (e.g. air conditioning) which is affected by the construction downturn. China’s economic recovery is seen as the main factor which could possibly trigger a change in price trend,” Lynas said in a presentation (pdf)....