Monday September 29, 2014
02:59 PM GMT+8

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Lynas mines rare earths, which are used in a range of high-tech products, in Western Australia, and operates a refinery near Kuantan in Malaysia. ― Reuters picLynas mines rare earths, which are used in a range of high-tech products, in Western Australia, and operates a refinery near Kuantan in Malaysia. ― Reuters picMELBOURNE, Sept 29 ― Shares in rare earths miner Lynas Corporation Ltd hit a five-year low as the company seeks to raise A$83 million (RM236 million) from investors to shore up its finances, the Australian Associated Press (AAP) reports.

The company's annual loss has also tripled to A$365.8 million.

Lynas mines rare earths, which are used in a range of high-tech products, in Western Australia, and operates a refinery near Kuantan in Malaysia.

The AAP said Lynas hoped to raise A$71 million by offering new shares to existing shareholders, plus another A$12 million via a placement of shares to institutional investors.

The new shares will be offered at eight cents each, lower than the 11.5 cents Lynas shares last traded before the capital raising was announced.

Since resuming trading today, the shares had dropped 2.75 cents, or 23.9 per cent, to 8.75 cents.

The company said the extra funding would strengthen its balance sheet and provide liquidity as it transforms from a start-up phase to full business operations.

Last week, it renegotiated a US$225 million loan, shifting its largest repayments to 2016.

Lynas' loss in the year to June blew out mainly because of lower average selling prices for its rare earths metals.

It has been responding to weaker prices with cost cutting, including a shift of its headquarters from Sydney to Kuala Lumpur. ― Bernama

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