Latest news with #LynasRareEarths'
West Australian
23-06-2025
- Business
- West Australian
Australia ready to benefit from G7's new critical minerals pact
A new critical minerals agreement with some of the world's top economies, driven by Australia and Canada at the G7, should open up Australia's markets to more investment to help turbocharge the industry and start breaking China's near-monopoly. Resources Minister Madeleine King said the G7's action plan would help drive collaboration between the largest economies to invest in the critical minerals vital for military uses and the energy transition. There would '100 per cent' be more to come on this front when Prime Minister Anthony Albanese meets Donald Trump, the minister revealed. Critical minerals featured heavily in Mr Albanese's discussions in Canada with US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessant. The G7 deal also formalises a push towards a standards-based market that seeks to lift all producers to higher environmental, labour and safety benchmarks — an area where Australia already leads. 'It's about alternative supply chains, and where we are different is in our standards,' Ms King told The West Australian. 'The security of the modern state, including our own, depends on critical minerals and rare earth elements and the things that they make. 'The energy part is really important, but national security is super important, and that's why you need the independent supply chain.' China's April ban on exports of rare earths and associated magnets underscored the need for other countries to find new supply chains after it upended manufacturers of everything from cars and aircraft to semiconductors and defence suppliers. Ms King described the export control as a 'bureaucratic mirage' that was a ban in all but name. 'When you have cornered the market, that's within your power, and that's within China's power to do that,' she said. 'You've got to have that reliable supply, and that's what we've been good at with many other commodities and we can be the same with these ones.' She said Japan had learned that lesson a decade ago, which led to its investment in Lynas Rare Earths' operations. The G7's critical minerals action plan builds on years of work Australia has led through the International Energy Agency on supply chains and the development of standards-based markets. G7 countries had all felt the impact of conflict and 'unfair competition' on their energy security and supply chains, Mr Albanese told fellow leaders during talks in Canada, leaving their producers struggling to remain competitive. Canadian Prime Minister Mark Carney said G7 leaders wanted to safeguard against 'unfair non-market policies and practices' to end market distortions that hurt workers and businesses. 'This includes de-risking through diversification and reduction of critical dependencies,' he said. 'Leaders welcomed the new Canada-led G7 initiative – the Critical Minerals Production Alliance – working with trusted international partners to guarantee supply for advanced manufacturing and defence.' Australia's new critical minerals strategic reserve – promised during the election and now being developed by the Department of Industry, Science and Resources' experts – will be a key part of this. 'We're doing it so we can also have a supply, but that supply will be bigger and the market will be more secure and can develop its volume and its resilience if we have the participation of others,' Ms King said, adding that Australia was already talking to several countries. 'To get their money, you've got to put your money into it too... So if we step up, they step up alongside us, and we go in this together to create that secure supply chain.' Wyloo chief executive Luca Giacovazzi said the G7's action proved the world was watching and that Canada and Australia had 'an outsized role' to play in diversifying markets. 'As we race to decarbonise, the solution lies in our ability to form meaningful global partnerships,' he said. 'We have the resources, we have the people, and now, we have the moment to act.' Association of Mining and Exploration Companies head Warren Pearce said it was good to have global leaders' meetings looking at these key issues. 'If they do take action, then that will be good for Australia,' he said.
West Australian
11-06-2025
- Business
- West Australian
State Govt to pump $543 million into Goldfields pipeline to double Kalgoorlie-Boulder's water storage capacity
A 'once-in-a-generation' cash injection of $543 million for the Goldfields pipeline will double the water storage capacity of the Binduli Reservoir that supplies Kalgoorlie-Boulder from 2027. The State Government on Wednesday announced it had allocated the cash in next week's State Budget to 'fast-track' the first stage of critical long-term upgrades to the Goldfields and Agricultural Water Supply Scheme. The expansion will ensure an extra 7.2 million litres of water each day flows down the heritage-listed 122-year-old pipeline from Mundaring Weir near Perth after the installation of 44.5km of 'looping pipe' — most of which would replace the original locking-bar pipe in the shires of Merredin, Westonia and Yilgarn. The new sections will be installed primarily below ground alongside the 566km existing route, with work to start early next year and be complete in 2027. Announcing the State Budget cash at Mt Charlotte Reservoir and Lookout in Kalgoorlie-Boulder — which is the pipeline's endpoint — Water Minister Don Punch said the expansion would be extremely important for the future economic and social growth of Kalgoorlie-Boulder. Mr Punch said the project signalled the Cook Government's commitment to regional WA to ensure people had safe drinking water and water supply needs were future-proofed, particularly in a drying climate. 'Clearly, with the growth that's happening and the attractiveness of this region, we need to increase water supply, and that's what this Budget commitment is about,' he said. 'It increases the capacity for growth in the Goldfields and particularly in Kalgoorlie, and we want to make sure there is a secure future for this region.' Member for Kalgoorlie Ali Kent said the expansion project was a once-in-a-generation commitment from the State Government. 'We all know what water is like, the scarcity of water when you live (600km) from Perth, so to have this security for our water system for the residents, for industry, for all future generations is just . . . magnificent,' she said. Mr Punch said the pipeline expansion would not directly flow to mining operations such as Lynas Rare Earths' $800m processing facility or the Kalgoorlie-Boulder Racing Club, as both received their water supplies from recycled wastewater from the City of Kalgoorlie-Boulder. 'This is a separate project from that (the city's wastewater supply) entirely but it does mean that more water is coming into the region and there will be a proportion that water that finds (its way) into the waste management system so there should be additional water capacity after 2027,' he said. Water Corporation chief executive Pat Donovan said the pipeline's existing capacity was 75 million litres of water a day. Mr Donovan said the expansion would increase capacity by about 10 per cent, and double the Binduli Reservoir's current capacity of 400 megalitres.
New Straits Times
19-05-2025
- Business
- New Straits Times
Federal govt encourages states to allow rare earth mining
KLANG: The federal government is encouraging state administrations to permit legal rare earth mining, following the successful first production of separated heavy rare earths at Australian company Lynas Rare Earths' processing plant in Kuantan, Pahang, on Friday. Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad said Malaysia aims to position itself as a regional hub for rare earth mining and processing.
Yahoo
30-04-2025
- Business
- Yahoo
Some Lynas Rare Earths Limited (ASX:LYC) Analysts Just Made A Major Cut To Next Year's Estimates
The latest analyst coverage could presage a bad day for Lynas Rare Earths Limited (ASX:LYC), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously. We've discovered 2 warning signs about Lynas Rare Earths. View them for free. Following the downgrade, the most recent consensus for Lynas Rare Earths from its 15 analysts is for revenues of AU$558m in 2025 which, if met, would be a meaningful 16% increase on its sales over the past 12 months. Statutory earnings per share are presumed to climb 18% to AU$0.064. Before this latest update, the analysts had been forecasting revenues of AU$626m and earnings per share (EPS) of AU$0.09 in 2025. Indeed, we can see that the analysts are a lot more bearish about Lynas Rare Earths' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot. Check out our latest analysis for Lynas Rare Earths Despite the cuts to forecast earnings, there was no real change to the AU$7.92 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Lynas Rare Earths' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Lynas Rare Earths is expected to grow much faster than its industry. The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Lynas Rare Earths after the downgrade. That said, the analysts might have good reason to be negative on Lynas Rare Earths, given concerns around earnings quality. Learn more, and discover the 1 other risk we've identified, for free on our platform here. Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
The five-year decline in earnings might be taking its toll on Lynas Rare Earths (ASX:LYC) shareholders as stock falls 6.2% over the past week
We think all investors should try to buy and hold high quality multi-year winners. While the best companies are hard to find, but they can generate massive returns over long periods. For example, the Lynas Rare Earths Limited (ASX:LYC) share price is up a whopping 383% in the last half decade, a handsome return for long term holders. This just goes to show the value creation that some businesses can achieve. Also pleasing for shareholders was the 27% gain in the last three months. While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment. Our free stock report includes 2 warning signs investors should be aware of before investing in Lynas Rare Earths. Read for free now. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Lynas Rare Earths actually saw its EPS drop 12% per year. Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. On the other hand, Lynas Rare Earths' revenue is growing nicely, at a compound rate of 10.0% over the last five years. In that case, the company may be sacrificing current earnings per share to drive growth. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). Lynas Rare Earths is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Lynas Rare Earths stock, you should check out this free report showing analyst consensus estimates for future profits. Investors should note that there's a difference between Lynas Rare Earths' total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. We note that Lynas Rare Earths' TSR, at 390% is higher than its share price return of 383%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising. We're pleased to report that Lynas Rare Earths shareholders have received a total shareholder return of 34% over one year. Having said that, the five-year TSR of 37% a year, is even better. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Lynas Rare Earths you should be aware of, and 1 of them is a bit concerning. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
