Shares in Lynas Corporation Limited
(ASX:LYC) have plunged in morning trade after widening its first half loss and flagging the need for possible funding.
The rare earths producer booked a net loss of $59.3 million in the last six months of 2013, expanding from a $56.6 million loss the year earlier.
While the company’s interim revenue rose to $14.6 million from zero in the prior period, net financial expenses gained 32 per cent to $7.5 million.
The results were impacted by higher costs associated with its Malaysian rare earths refinery, the Lynas Advanced Materials Plant.
Looking ahead Lynas has forecast production to ramp-up and expects March quarter production levels to increase above the prior quarter.
Lynas has also flagged the need for additional funding over the next 12 months in order to maintain appropriate liquidity headroom.
The funding is expected to be sourced through a combination of additional equity, additional debt or some refinancing or restructure of the company’s existing debt facilities.
Shares in Lynas Corporation had plunged 13.56 per cent in morning trade to $0.255.
