MELBOURNE: Australian rare earths producer Lynas Corp said it is unlikely to break even this quarter despite achieving positive cashflow in December, blaming weak rare earths prices and plant problems.
The warning sent its shares down as much as 10% in early trade yesterday.
Lynas, one of only two rare earths producers outside China, has been struggling to stay afloat as it battles teething problems at its plant in Malaysia, a slump in prices of the elements used in everything from smart phones to stealth helicopters, and a huge debt load.
Chief executive Amanda Lacaze said the company had gained market share in Japan, with Lynas supplying about 40% of the neodymium praseodymium mixture sold to the Japanese magnet industry.
Sales revenue rose to A$78mil (US$62mil) for the first half of the 2015 financial year from A$59mil for the whole of the previous financial year, thanks to higher volumes. — Reuters
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