Rare earths miner Lynas is taking a bath on the ASX today with shares down more than 24%.
The miner’s stock is known for its volatility but today’s sell off is being driven by another full year loss and a heavily discounted share issue.
Lynas posted a full-year loss of $365.8 million for the year to June 30, compared to $107.4 million a year prior.
Entering into a trading halt on last week, Lynas today announced it would issue shares at 8 cents, discounted from its last traded price of 11.5 cents a piece.
The miner is trying to raise up to $83 million via a placement and rights issue.
The rare earths market is dominated by Chinese production. The Australian-listed Lynas has an operating mine in Western Australia and runs a processing plant in Malaysia.
It is aiming to raise $12 million via a placement offer with institutional investors and up to $71 million via a rights issue which is being underwritten by Patersons.
Lynas shares were trading at 8.7 cents a short time ago.
Here’s the chart.