Citi lowers PT on Lynas Rare Earths on higher Kalgoorlie facility costs

Ionic Rare Earths

29/08/2023 20:55

** Citi downgrades PT on Lynas Rare Earths Ltd  LYC.AX  to
A$7.35 from A$7.60 
    ** The world's biggest rare earths miner outside China hiked
construction cost estimates for its Kalgoorlie rare earths
facility by more than a quarter and said it would boost the
plant's production capacity to tap growing demand
    ** Co now expects to incur A$730 million ($473.19 million)
in costs to complete the construction of Kalgoorlie, vs earlier
estimate of A$575 million
    ** Brokerage Citi upgrades earnings estimate for FY24 and
FY25 by 17% and 3%, respectively, on the back of lower operating
costs and higher financial income; maintains "neutral" rating
    ** 10 of 13 analysts rate the stock "buy" or higher and 3
"hold"; their median PT is A$9.57 – Refinitiv data
    ** Stock down 8.7% this year, as of last close


($1 = 1.5427 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))