The company has reported figures for the first quarter of 2023.
Canada-based Neo Performance Materials, which specializes in the production of metal alloys and rare earth magnets, reported a revenue of $135.5 million from January through March in its earnings report published Friday. The company declared an operating loss of $4 million and a net loss of $10.7 million. Neo attributes the comparatively low first-quarter volume primarily to slower economic activity in China after the zero-covid policy was lifted in December.
Despite a slump in sales – Neo expands its rare earths business
On the other hand, the company reports positive news from the current quarter, such as the acquisition of magnet manufacturer SG Technologies Group (we reported). This is intended to prepare for the increasing demand for rare earth magnets and other high-tech materials for electromobility. In the future, the company also wants to mine the raw materials required for this itself, for example in Greenland. The company has now taken an important step in this direction: At the end of April, Neo announced that the Greenlandic government had approved the transfer of an exploration license from Hudson Resources, Inc. to Neo North Star Resources Inc (NNSR). NNSR is a subsidiary controlled by Neo Performance Materials. The exploration license covers part of the Sarfartoq Carbonatite Complex in southwestern Greenland, which Neo says is a prospective magnetic rare earth property.
Neo Performance Materials also operates a rare earth separation plant in Estonia and is building a production facility for sintered rare earth permanent magnets with funding from the Estonian government.
Photo: iStock/xiao zhou