Despite 22% more sales year-on-year, the sales revenue was below analysts’ estimates.
Australian rare earths miner Lynas reported mixed quarterly results on Monday (PDF), citing ongoing global trade volatility as a key headwind for the industry. Despite a 22% increase in sales volumes year-on-year, the company’s sales revenue fell short of analysts’ expectations. In its earnings release, Lynas pointed to a challenging global environment, with recent geopolitical tensions and trade policy changes disrupting the rare earths market. It highlighted that the two-way rare earth material flow between the U.S. and China has effectively stopped because of the implemented trade tariffs.
An Optimistic Note Regarding Heavy Rare Earths
Despite these challenges, the miner was optimistic about its upcoming production of separated heavy rare earths, a key segment with limited supply chains outside China. Lynas announced that the first production of dysprosium is expected in May, with terbium to follow in June. Especially considering Beijing’s recently imposed export controls on seven heavy rare earths, this marks a significant milestone, as it would position Lynas as the only commercial producer of separated heavy rare earths outside China.
Photo: Canva via franky242.
