Yesterday shares in Lynas Corporation Limited (ASX:LYC) slumped to the worst performer of the S&P/ASX200 index after concerns emerged over rare earths pricing and demand.
Lynas has since responded to a price and volume query from the Australian Securities Exchange, claiming that it cannot explain the recent trading.
Ahead of the rare earth producer’s full year results, due out tomorrow, Lynas says it does not believe the result will have a material effect on the company’s securities as it has not yet started production.
Lynas says, subject to an audit committee review, it expects to widen its loss before income tax by around 30 per cent to $57 million in the 2011 financial year.
Yesterday shares in Lynas slumped 12.33 per cent, closing at a two year low of $1.28, after a JP Morgan analyst downgraded fellow rare earths producer, US listed Molycorp Inc (NYSE:MCP), and forecast demand for rare earths outside of China to fall.
In the first half of its 2011 financial year Lynas Corporation reported a net loss of $20.5 million.
