Sydney, Feb 27, 2026, 17:32 AEDT — After-hours
- Lynas finished the day up 10.1% at A$18.98, pushing its rally further after results landed.
- Rare earths producer reported a half-year profit of A$80.2 million, falling short of consensus expectations.
- NdPr prices and progress at Lynas’ Kalgoorlie facility are both in focus as traders look ahead to the next quarterly update.
Lynas Rare Earths shares surged 10.09% to finish at A$18.98 on Friday, turnover accelerating after a week of gains for the stock.
Lynas’ bottom line is closely tied to NdPr — shorthand for neodymium-praseodymium, which is essential in making permanent magnets for electric motors and wind turbines. A change in the benchmark? Lynas’ realised prices typically move right with it.
Execution keeps coming up for investors. Lynas expanded capacity, rolled out new product lines, but the market hasn’t hesitated to punish any missteps—Kalgoorlie, in particular, stands out for operational hiccups.
Lynas booked a net profit after tax of A$80.2 million for the six months to Dec. 31—well above last year’s A$5.9 million, but missing the Visible Alpha consensus of A$91.8 million. No interim dividend. Management cited November’s power outages at its Kalgoorlie facility in Western Australia, which crimped production and pushed up costs.
CEO and Managing Director Amanda Lacaze called the December half of FY2026 “an exciting one for Lynas” in the company’s half-year update, pointing to the Mt Weld expansion coming online, heavy rare earth output starting up in Malaysia, and this period’s equity raise. Lynas posted A$413.7 million in revenue for the half, alongside A$152.4 million in EBITDA. By period-end, cash and cash equivalents sat at A$1.03 billion. Rare earth oxide (REO) output landed at 6,375 tonnes, with 6,050 tonnes sold. According to Lynas, the average China domestic NdPr price (excluding VAT) touched US$74/kg in December 2025, and “yesterday reached” US$111.5/kg—a jump that translated into higher selling prices for the group.
Brokers nudged price targets higher but stuck with caution on the stock. Ord Minnett stayed with its Sell call, upping the target price to A$14 from A$11. Bell Potter also held its Sell rating, bumping the target to A$11.60 from A$11.15. Both firms cited valuation and lingering uncertainty about the staying power of current NdPr strength.
Lynas, in its investor slide deck, highlighted recent government actions shaking up the rare earths sector—one example: the U.S. government’s offtake deal with MP Materials, which sets a US$110/kg floor price for NdPr. The company said electricity supply at Kalgoorlie leveled out in December after fixes by the power provider, though Lynas is still pursuing off-grid power alternatives. It also pointed to its heavy rare earth expansion in Malaysia, targeting initial samarium output in Q4 FY26, and again noted CEO Lacaze plans to step down at the end of this financial year.
But there’s risk on the other side too. If NdPr prices ease, or buyers start resisting those premiums, the stock’s current earnings drive could stall in a hurry. Another round of power disruptions? That would just tangle up costs all over again.
The market stays closed until Monday, leaving traders focused on rare earth price data and whether broker calls see any momentum. The next event on the radar: Lynas’ quarterly report, slated for April 27, Market Index calendar data shows.
