Lynas Rare Earths sinks after revenue miss, Malaysia project cost overrun

Lynas Rare Earths (LYSCF) (LYSDY) down 5.2% to the lowest in more than five months in Wednesday's trading after reporting FQ4 gross revenue surged nearly 70% Y/Y to A$288.9M (~US$202M) but missed analyst expectations, according to Bloomberg.

The quarterly revenue was Lynas' (LYSCF) (LYSDY) strongest in four years, helped by higher prices for rare earths, but sales volume declined during the three-month period.

Lynas (LYSCF) (LYSDY) reported rare earths oxide production of 3,481 tons, an increase from the prior quarter but coming in 10% below the Visible Alpha consensus estimate, while production of neodymium and praseodymium totaled 1,857 tons, declining from the previous quarter.

Lynas (LYSCF) (LYSDY) also warned of a cost overrun at its heavy rare earths expansion project in Malaysia, as the estimated cost jumped to nearly A$294M from A$180M, and said ore quality issues at its Mt Weld project in Western Australia also affected production.