Join our daily newsletter At The Bell to receive exclusive market insights
- Lynas Rare Earths (LYC) increased production of rare earth oxides (REO) to over 4,200 tonnes despite ongoing challenges during the December 2021 quarter
- The production result includes 1,359 tonnes of neodymium and praseodymium (NdPr), whose market price experienced a 10-year record high
- The multibillion-dollar company sales revenue surged to a record $202.7 million for the quarter, which it says reflects the “continued buoyancy of the market” and strong customer demand
- Lynas says it prioritised supply continuity to customers over higher costs as logistics challenges increased transit times from March to December
- LYC shares up 0.81 per cent to $11.18
Lynas Rare Earths (LYC) has delivered record sales revenue on the back of increased production for the December 2021 quarter.
Despite ongoing challenges related to COVID-19, the company produced 4,209 tonnes of rare earth oxides (REO) including 1,359 tonnes of neodymium and praseodymium (NdPr) during the fourth quarter.
In the September quarter it produced 3,166 tonnes of total REOs and 1,255 tonnes of NdPr.
Managing Director Amanda Lacaze said sustained demand for NdPr resulted in the market price reaching US$100 (A$139) per kilogram, the first time since 2011 that it reached that level.
The multibillion-dollar company generated a record $202.7 million in sales revenue, which it said reflected the “continued buoyancy” of the market and strong customer demand for a sustainable supply source of rare earths.
In terms of increased production, Ms Lacaze said it was a “credit to the team” the production outcomes were achieved amid ongoing logistics challenges and delays.
Lynas faced an 18-day increase in the transit period to 33 days by December for concentrate shipped from Fremantle to Kuantan, Malaysia, and expected the delays to continue.
In response to longer transit times, Lynas prioritised continuity of supply to customers over higher costs that came with chartering a ship to transport its rare earth concentrate.
At the end of the quarter, Lynas had a cash balance of $674.2 million, compared with $667.3 million in the preceding quarter.
LYC shares were up 0.81 per cent to $11.18 at 10:41 am AEDT.
