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Highlights
- Lynas shares gained 72% in a year, backed by consistent earnings generated by the company.
- The company reported an NPAT of AU$156.9 million and revenue of AU$314.8 million in H1 FY22.
- The company recently signed another agreement with JARE
The shares of the rare earth element producer, Lynas Rare Earths Limited (ASX:LYC), traded 4.566% lower on the ASX today (5 April) at AU$10.870 per share at 12:30 PM AEST. Approximately 3.5 million shares of Lynas were traded till now during today’s trading session on the ASX.
The share price of Lynas has gained over 72% on the ASX over the past 12 months. On the other hand, Lynas’ year-to-date share price fell by almost 2% on the ASX today (5 April) at 12:30 PM AEST.
Why are investors’ eyeing the Lynas stock on the ASX today?
Lynas recently reported its H1 FY22 results, where the company said that it could make strong sales in the given period due to strong customer demand for sustainable rare earth element supply and suitable market conditions. As a result, the company is also focusing on developing a strong foundation to satisfy its customer demands by accelerating production.
Read more: Here’s why Lynas Rare Earths (ASX:LYC) shares are gaining on ASX
Highlights of Lynas’s H1 FY22 results:
Image Source © 2022 Kalkine Media ®
The mining company, with a market capitalisation of AU$10.27 billion, is currently focused on its 2025 strategy. As a result, Lynas is investing in its Mt Weld resource, and the company is expecting to accelerate this investment to ensure business growth.
Lynas’ agreement with JARE:
Image source: © Stokkete | Megapixl.com
Lynas announced on 31 March 2022 that it has signed a letter of agreement with Japan Australia Rare Earths B.V. (JARE). This agreement enabled Lynas to reconfirm its shared commitment to work together with JARE on future development opportunities.
Earlier on 1 November 2021, Lynas and JARE signed a letter of agreement. As per that agreement, Lynas and JARE were supposed to work together on the development of the Lynas business, and JARE deferred interest of US$11.5 million until 31 March 2022, without any penalty or additional interest.
However, according to the new letter of agreement, JARE has agreed to defer the repayment of this interest further until 31 October 2022, with zero penalty and additional interest.
Image Source © 2022 Kalkine Media ®
Therefore, we assume that the above-mentioned are the factors responsible for Lynas shares being in the spotlight today.
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About Lynas:
Lynas Rare Earths Limited is an Australian rare earth elements producer. The company is engaged in the processing and extraction of rare earth minerals. Lynas’ subsidiaries include- Lynas Services Pty Ltd and Lynas Malaysia Sdn Bhd. The company is based in East Perth.
