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Lynas posts record annual profit as demand rebounds

Lynas Rare Earths' production disruption concerns persist

Rare earth production line at Lynas’ plant in Kuantan, Malaysia. (Image taken from Lynas’ presentation.)

Australia’s Lynas Rare Earths posted a record full-year profit on Monday, bouncing back from losses a year earlier, as demand for the specialized metals it mines boomed after covid-19 curbs eased.

A surge in orders for electric vehicles amid the global push to reduce carbon emissions and a reopening from pandemic-related restrictions have helped the rare earths market recover from last year’s troughs.

Lynas, the world’s biggest rare earths miner outside China, said profit after tax came in at A$157.1 million ($113.74 million) for the year ended June 30, compared with a loss of A$19.4 million a year earlier.

“The rare earths market rebound despite the ongoing pandemic reinforces the importance of this critical material globally,” Chief Executive Officer Amanda Lacaze said in a statement.

Rare earths are used in a wide range of products, including electric vehicles, smartphones and military equipment.

Lynas’s full-year revenue rose to A$489.0 million, from A$305.1 million a year ago. The company did not declare a dividend.

($1 = 1.3812 Australian dollars)

(By Soumyajit Saha and Harish Sridharan; Editing by Aditya Soni)

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