Lynas Rare Earths posts profit miss after ‘painful time’

Lynas Rare Earths Ltd, the primary refiner of critical minerals outside China, has reported a profit miss for the full year due to rising costs and challenges faced during the expansion of new facilities in Australia. The company, along with America’s MP Materials Corp, is the only major source of rare earths outside China and is pursuing expansions amid a global move to reduce reliance on Beijing.

Strong demand for non-China material has driven prices up, resulting in a 76% increase in Lynas’ full-year revenue to A$977.9 million (US$717 million). However, operations in Western Australia have encountered obstacles, such as variations in ore quality affecting downstream processing, which the company described as a "very painful time" during which it resolved the issues.

Higher fixed costs at newly commissioned facilities and more expensive inputs, such as sulfuric acid, have also contributed to the profit shortfall. Lynas has seen record output of neodymium-praseodymium oxide and began shipping refined "heavy" rare earths, which became a focus of geopolitical tensions when China imposed strict export controls in 2025.

The company is seeking to secure more supplies of "heavies," including adjustments to its mining plan in Australia or partnerships with third parties. Lynas' net income for the 12 months ending June 30 reached a record A$222.4 million, surpassing the average analyst estimate of A$263.2 million. However, the result fell short of estimates and led to a 5.9% decline in the company's shares, marking a year-to-date gain of around 26%.

Former CEO Amanda Lacaze retired at the end of June, and interim CEO Pol Le Roux is still searching for a permanent replacement.