Lynas Malaysian Plant Causes Shares To Tumble On Half-Year Loss

MELBOURNE (Australia) -- Shares in rare earth miner Lynas have tumbled after its half-year loss widened.

The Australian Associated Press reports the company has announced a net loss of US$53.53 million (A$59.3 million, US$1 = A$1.10) in the last six months of 2013, up from a A$56.6 million loss during the same period a year earlier.

Its interim revenue rose to A$14.6 million from zero in the prior period and net financial expenses increased by 31 per cent to A$7.5 million.

Lynas said in a statement higher costs associated with its Malaysian rare earth minerals refinery, the Lynas Advanced Materials Plant near Kuantan of Pahang state, played a big part in the company's poor earnings report.

Lynas had planned to start production at its Malaysian plant in 2011 when rare earth prices were booming but fierce opposition from local villagers and court battles caused major delays.

Costs associated with the ramp-up of the plant in January have weighed on the company's results, with non-cash depreciation and amortisation charges in the half year rising by A$8.5 million, a statement from Lynas says.

The miner says it will need to raise more cash either through an equity issue or more debt or a restructure of its debt facilities in the next year.

Investors responded negatively to the news.

At 13.20 (AEDT) Lynas shares were 11.86 per cent lower at 26 cents.

Rare earth minerals are used in a range of hi-tech products, including telescopes, X-ray and MRI scanning devices.

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