Join our daily newsletter At The Bell to receive exclusive market insights
- Lynas Rare Earths (LYC) has increased total rare earth oxide (REO) production in the March quarter, with its Malaysian facility operating at 75 per cent capacity
- The company produced 4463 tonnes of REO, around 1100 more than in the previous quarter,and recorded a higher average selling price
- Sales revenue was, however, slightly subdued, which the company attributed to the impact of the pandemic on trade and delay of shipments due to the Suez Canal blockage
- During the quarter, Lynas also received approval to commence preliminary site works for its Kalgoorlie Project and inked an agreement with the U.S. government to build a commercial light rare earth separation plant
- Shares have been down 6.2 per cent at $5.99
Lynas Rare Earths (LYC) has increased total rare earth oxide (REO) production in the March quarter, with its Malaysian facility operating at 75 per cent capacity.
For the time being, the company has decided to keep the Lynas NEXT production rate at this level in order to maintain COVID-19 protocols.
Over the three-month period, the company produced 4463 tonnes of REO, around 1100 more than in the previous quarter, and noted robust demand from the catalyst and magnet sectors.
It also recorded an average selling price of $35.5/kg, compared to $29.5/kg in the previous quarter or $19.8/kg in the prior corresponding period.
However, sales revenue was slightly subdued at $110 million compared to $119.4 million in the previous quarter.
Lynas said global trade continued to be disrupted by COVID-19 and that some shipments were pushed back into April due to the Suez Canal blockage.
On the other hand, sales increased to $133 million, which was in part attributed to the delay in collection of revenue from the December quarter.
Additionally, during the third quarter of the 2021 financial year, Lynas progressed its plans outside of Malaysia. In Western Australia, the company received approval to commence preliminary site works for its Kalgoorlie Project.
Lynas also inked an agreement with the U.S. government to build a commercial light rare earth separation plant in the country.
Shares have been down 6.2 per cent at $5.99 at 12:31 pm AEST.
