Lynas Rare Earths Plans A$750M Fundraising Amid Uncertainty Over Texas Plant Development

Funding Plans: Lynas Rare Earths plans to raise A$750M (US$488M) through a share sale to fund expansion and pursue deals with metal or magnet makers, but may not proceed with a heavy rare earths processing facility in Texas.

Stock Issuance Details: The company will issue new stock at A$13.25/share, a 10% discount from its last traded price, to enhance processing capacity and operations.

Profit Decline: Despite shares more than doubling year-to-date, Lynas reported a net profit drop of over 90% to A$8M for the year ending June 30, missing analyst expectations significantly.

Project Uncertainty: There is significant uncertainty regarding the construction of the Texas plant, despite receiving $258M in grant funding from the U.S. Department of Defense, as Lynas seeks acceptable supply agreements.