Leading rare earths producer outside China reports quarterly results.
Australian mining company Lynas on Wednesday released its quarterly results (PDF) for the period ending December 31. The world’s largest rare earths producer outside China reported an increase in revenue, even though production was approximately 30 percent below the previous quarter’s level. The shortfall was partly due to power outages at Lynas’ processing facility in Kalgoorlie, Western Australia (we reported).
Despite the production decline, revenue rose slightly from the previous quarter to the equivalent of US$136.08 million. Compared with the same period last year, revenue increased by 43 percent. Lynas attributed the growth in part to higher prices for the magnet material neodymium-praseodymium (NdPr).
According to CEO Amanda Lacaze, recent U.S. government measures have already influenced market dynamics. Last summer, the Pentagon became the largest shareholder of the leading domestic rare earths producer, MP Materials, including an offtake agreement with price guarantees. Following this, the G7 nations and Australia are currently considering the introduction of price floors for critical minerals sourced outside China. Lacaze said Lynas is engaged in ongoing discussions with various Western governments on this issue.
Lynas to Expand Production of Heavy Rare Earths
Lynas said revenue growth in the past quarter was also supported by new contracts involving the sale of dysprosium-terbium (DyTb). These heavy rare earths currently command significantly higher prices than NdPr because they are essential for high-performance permanent magnets. At the same time, they are commercially produced almost exclusively in China and have been subject to strict export controls there since early April. Lynas is currently expanding its capacity to produce these and other critical rare earth elements, including samarium, at its Malaysian facility (we reported).
On the less positive side, Lynas reported ongoing uncertainty regarding its planned U.S. heavy rare earths processing plant. The project, which is to be realized with support from the U.S. Department of Defense, remains subject to considerable uncertainties regarding its future.
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