Lynas Stock Is Taking A Bath On The ASX Today

Getty/Doug Pensinger

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.

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