LAMP Ramp Up Weighs on Lynas’ Half-year Results

The Australian reported yesterday that Lynas Corporation Ltd. (ASX:LYC) recorded a net loss of $59.29 million during the six months ended December 31, 2013, up slightly from the previous corresponding period. However, the company posted revenue of $14.6 million; in the year-ago period it brought in no revenue at all.

Weighing on Lynas’ results were costs related to the ramp up to the first phase of its Malaysia-based Lynas Advanced Materials Plant (LAMP).

As quoted in the market news:

Net financial expenses were $7.5m, a 32 per cent increase on the $5.7m for first half of the previous year.

Investors responded poorly to the news. At 10.55am (AEDT) Lynas shares were 11.02 per cent lower at 26.25c, against a completely flat benchmark index.

In earlier trade, Lynas shares dropped as low as 24.5c, their lowest point since April 30, 2009 when Lynas traded at 22.125c.

Click here to read the full report from The Australian.