Lynas Rare Earths (ASX:LYC) Effective Interest Rate on Debt %: 5.49% (As of Dec. 2025)


ASX:LYC Lynas Rare Earths Ltd ASX:LYC
78 GF Score
Price A$19.34
GF Value A$13.70
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Lynas Rare Earths Effective Interest Rate on Debt %?

Lynas Rare Earths ASX:LYC +4.03% 78 Effective Interest Rate on Debt % is 5.49% as of Dec. 2025. GuruFocus rates ASX:LYC with a GF Score™ of 78/100 and a GF Value™ of A$13.70 (Significantly Overvalued). The stock has 3 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Lynas Rare Earths's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was A$11.4 Mil. Lynas Rare Earths's average total debt for the quarter that ended in Dec. 2025 was A$207.4 Mil. Therefore, Lynas Rare Earths's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 5.49%.


Lynas Rare Earths  (ASX:LYC) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Lynas Rare Earths Effective Interest Rate on Debt % Related Terms


Lynas Rare Earths Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Lynas Rare Earths's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Lynas Rare Earths Effective Interest Rate on Debt % Chart

Lynas Rare Earths Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.93 5.07 1.86 4.68 5.99

Lynas Rare Earths Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.15 5.33 6.02 5.87 5.49

Lynas Rare Earths Effective Interest Rate on Debt % Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Lynas Rare Earths's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lynas Rare Earths Effective Interest Rate on Debt % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Lynas Rare Earths's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Lynas Rare Earths's Effective Interest Rate on Debt % falls into.


ASX:LYC
78GF Score
Lynas Rare Earths Ltd ASX:LYC
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Lynas Rare Earths Effective Interest Rate on Debt % Calculation

Lynas Rare Earths's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2024 )+Total Debt  (A: Jun. 2025 ))/ count )
=-1  *  -11.57/( (183.978+202.046)/ 2 )
=-1  *  -11.57/193.012
=5.99 %

where

Total Debt  (A: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=150.482 + 33.496
=183.978

Total Debt  (A: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=168.257 + 33.789
=202.046

Lynas Rare Earths's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -11.384/( (202.046+212.77)/ 2 )
=-1  *  -11.384/207.408
=5.49 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=168.257 + 33.789
=202.046

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=180.454 + 32.316
=212.77

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 5.49% mean?
Lynas Rare Earths (ASX:LYC) has a Effective Interest Rate on Debt % of 5.49% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Lynas Rare Earths and its competitors.
Is Lynas Rare Earths' Effective Interest Rate on Debt % too high?
Lynas Rare Earths' current Effective Interest Rate on Debt % is 5.49%. Overall, Lynas Rare Earths has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lynas Rare Earths' Effective Interest Rate on Debt % compare to competitors?
Lynas Rare Earths' Effective Interest Rate on Debt % of 5.49% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Metals & Mining company?
A good Effective Interest Rate on Debt % depends on the Metals & Mining industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Lynas Rare Earths and its competitors. Lynas Rare Earths's current Effective Interest Rate on Debt % is 5.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lynas Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Lynas Rare Earths (ASX:LYC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$13.70, compared to a current price of A$19.34 — trading 41.2% above its estimated fair value. The current Effective Interest Rate on Debt % is 5.49%. Lynas Rare Earths' overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Lynas Rare Earths (ASX:LYC), the current Effective Interest Rate on Debt % is 5.49% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Lynas Rare Earths (ASX:LYC) Overvalued in 2026?

Based on GuruFocus' analysis, Lynas Rare Earths stock appears to be overvalued. The current stock price of A$19.34 is trading 41.2% above its estimated GF Value™ of A$13.70. GuruFocus considers Lynas Rare Earths to be Significantly Overvalued.

Key valuation signals for ASX:LYC:

  • Effective Interest Rate on Debt %: 5.49%
  • GF Value™: A$13.70 vs. price of A$19.34 (41.2% above fair value)
  • GF Score™: 78/100 with 3 warning signs

No single metric tells the full story. See the ASX:LYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lynas Rare Earths Business Description

Address 1 Howard Street, Level 4, Perth, WA, AUS, 6000
Lynas is the largest rare-earth producer outside China. It owns the high-grade Mount Weld deposit in Western Australia and rare-earth processing facilities in Kalgoorlie and Malaysia. We estimate that Mount Weld is the world's lowest-cost producer of separated neodymium and praseodymium, light rare-earth materials, which are sold to customers in the form of neodymium-praseodymium oxide with a mine life exceeding 20 years. As of December 2025, Lynas is also the only producer of separated heavy rare-earth dysprosium and terbium outside China. The company is further expanding NdPr capacity while diversifying into producing additional separated rare-earth materials, including samarium. It also intends to move downstream into rare-earth metal and magnet production.
78GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$19.34
Price
A$13.70
GF Value