Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Lynas Falls on Weakening Rare Earths Price Outlook: Sydney Mover

Don't Miss Out —
Follow us on:

April 2 (Bloomberg) -- Lynas Corp., the Australian company building the world’s largest rare earths plant in Malaysia, fell in Sydney on the dimming outlook for prices and concern its permit may be reviewed should the opposition wrest power in the coming Malaysian elections.

The stock fell 9.8 percent to 50.5 Australian cents at the end of trading, its lowest close since June 11, 2010. The benchmark S&P/ASX 200 Index gained 0.4 percent.

The outlook for rare earths prices remains weak after Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., China’s biggest producer, reported a 57 percent drop in 2012 profit, said Stan Shamu, a market strategist at IG Markets Ltd. Malaysian opposition leader Anwar Ibrahim’s proposal to review Lynas’s permit if he wins the elections is also hurting the stock.

The Malaysian elections could be held later this month after the New Straits Times reported today Prime Minister Najib Razak may dissolve parliament as early as tomorrow.

“There seems to be no recovery in the rare earths industry this year and sentiment is made worse by speculation about the election in Malaysia,” Shamu said by phone from Melbourne.

Lynas won’t comment on speculation or stock price movement, Cameron Morse, a spokesman for Lynas who works for FTI Consulting, said by phone from Sydney.

Lynas began production in February at its 11,000 metric ton-capacity first-phase refinery in Malaysia’s Pahang state after delays due to protests and legal challenges over radiation concerns. The company said March 4 it was on schedule to commission the second phase in the second quarter that would double annual capacity.

To contact the reporter on this story: Soraya Permatasari in Melbourne at soraya@bloomberg.net

To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net; Andrew Hobbs at ahobbs4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.