Lynas Rare Earths Ltd (ASX: LYC) shares are moving higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed Friday at $7.70. In early afternoon trade on Monday, they were changing hands for $7.74 apiece, up 0.5%.
That puts Lynas shares up 27.5% since this time last year.
And according to Catapult Wealth's Dylan Evans, the ASX 200 rare earths miner could continue to march higher in the year ahead.
Evans has a buy rating on the stock, dismissing concerns over the big year-on-year plunge in FY 2024 profits.
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Lynas shares poised for growth
"Revenue from ordinary activities in fiscal year 2024 was down 37.3% on the prior corresponding period. Net profit was down 72.8%," Evans noted (courtesy of The Bull).
"However, behind the headline numbers is a positive story of expansion," he added.
Explaining his optimistic outlook for Lynas shares, Evans said:
During the year, Lynas increased its reserves, completed the first stage of its Mt Weld mine expansion and delivered on its planned processing plant upgrades.
Consequently, these positive developments enable Lynas to support future production and to take advantage of future demand for rare earths, driven by growth in electronic devices, renewable energy technology and defence.
The rare earths miner released its FY 2024 results on 28 August.
And ASX 200 investors appeared to look beyond the profit plunge, with Lynas shares closing up 3.4% on the day.
The miner attributed the year-on-year fall in revenue and profits to "stubbornly low" rare earths market prices, with demand from China remaining subdued over the past 12 months.
But that could be set to change for the better as well. China's government recently announced a series of new stimulus measures to boost the country's growth.
Lynas also received a variation for its Malaysian operating licence in FY 2024. This will enable the miner to continue cracking and leaching at its Malaysian facility.
Then there's Lynas' Kalgoorlie Rare Earths Processing Facility, located in Western Australia, which achieved its first production over the year.
"Lynas has over a decade of experience as a supplier of separated rare earths, and this means we are well prepared to weather market price volatility," Lynas CEO Amanda Lacaze said following the release of the miner's full-year results.
And things were looking up for Lynas shares in the latter months of FY 2024.
"Our average selling price improved towards the end of FY24 as we proactively managed the timing of sales, especially for Heavy Rare Earths where pricing was particularly volatile," Lacaze noted.
As for FY 2025, Lacaze said, "We continue to see investment and policy initiatives that will support a growing global rare earths supply chain."
