Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Annual revenue of Lynas reached AUD 556.5 million in FY25, with NdPr sales volumes increasing by 18% to 6,555 tonnes.

  • Lynas launched its Towards 2030 strategy, focusing on optimising capital investments and expanding scale, downstream capacity, and supply chain participation.

  • A capital raising initiative of AUD 825 million (placement and SPP combined) will support execution of growth projects and enhance financial flexibility.

Lynas Rare Earths Limited (ASX:LYC), a leading global rare earths producer outside of China, has released its financial results for the year ended 30 June 2025 and announced the launch of its “Towards 2030” strategy to drive the company’s next phase of growth. Alongside the strategic update, Lynas confirmed an equity raising initiative to support upcoming projects and expansion plans.

FY25 Financial Performance

For the financial year, Lynas reported revenue of AUD 556.5 million, an increase supported by higher production and sales of the NdPr product family. However, Net Profit After Tax (NPAT) was lower at AUD 8.0 million, primarily impacted by additional depreciation costs linked to the Kalgoorlie Facility and Mt Weld expansion, as well as lower than expected production volumes at the Kalgoorlie Facility.

Sales volumes for NdPr increased 18% year-on-year to 6,555 tonnes, demonstrating strong demand for the high-value product. Total Rare Earth Oxide (REO) sales volumes declined 10% to 10,970 tonnes, following a deliberate reduction in lower-value La and Ce product output.

Market pricing provided some support, with the average China domestic NdPr price (excluding VAT) rising from USD 44.0/kg in June 2024 to USD 55.0/kg in June 2025, and prices continuing their upward trajectory in the September quarter. Cost of sales rose by 29% on the prior year due to increased NdPr sales and the ramp-up of new facilities across the group’s operations.

Strategic Initiatives

The company confirmed the completion of its Lynas 2025 growth initiative, launched in 2019 to enhance efficiency, capacity, and sustainability. With construction phases concluded during FY25, Lynas is now focused on commissioning and ramping up these assets.

Looking ahead, Lynas unveiled its “Towards 2030” strategy, structured around two pillars:

  • Harvest – Maximising returns from recent capital investments, optimising performance of new facilities, and aligning output with customer demand and market growth.

  • Grow – Expanding the business through:

    • Enhancing resources and scale at Mt Weld, including development of higher-grade NdPr concentrate and additional feedstock sources.

    • Increasing downstream capacity, particularly in Heavy Rare Earth separation in Malaysia, and boosting NdPr separation capacity to a target of 12ktpa.

    • Expanding further into the non-China metal and magnet supply chain through partnerships, joint ventures, and potential equity investments.

Equity Raising to Support Growth

To fund its growth ambitions, Lynas announced a fully underwritten pro-rata placement to raise approximately AUD 750 million, complemented by a non-underwritten share purchase plan aiming to secure up to AUD 75 million. New shares will be issued at AUD 13.25 per share, representing a 10% discount to the last traded price on 27 August 2025.

The equity raising is expected to provide financial flexibility to execute its Towards 2030 strategy.