The Australian mining company cites lower rare earths prices and the slow recovery of the Chinese economy as reasons.
Lynas Rare Earths reported a 47 percent decrease in fourth-quarter revenue on Monday. This decline was attributed to lower prices for rare earths products and the slow recovery of the Chinese economy, according to the quarterly report (PDF). The company’s sales revenue for the three-month period ending June 30 was A$157.5 million ($105.44 million), compared to A$294.5 million ($197,16 million) from the same period a year ago.
The drop in rare earth prices during the past quarter was influenced by increased supply from China, the leading producer of rare earths, and lower demand from green energy companies and the automotive sector. The company highlighted however that it remains the largest producer of rare earths outside of China. Lynas further stated that future pricing trends will continue to depend on China’s economic recovery and its production quota for the second half of 2023.
Lynas also provided an update on its Kalgoorlie rare earths processing facility in Western Australia, stating that the first production of mixed rare earths carbonate from this facility is projected to begin in September 2023, one month later than previously anticipated. The delay in production at the Kalgoorlie facility may be related to the company’s efforts surrounding its Malaysian facility. Lynas continues to seek a legal review of conditions that could threaten its permit in Malaysia. Regulators in Malaysia raised issues about radiation levels from the process of cracking and leaching, which led to uncertainties about the future of the Malaysian facility. However, in May, Lynas’ operating license in Malaysia to import and process rare earths was extended until January 1, 2024.