- Lynas Rare Earths (LYC) produces its highest-ever quarterly production of neodymium-praseodymium and increases sales revenues and receipts quarter on quarter
- However, sales revenues and receipts have dropped compared to this time last year, with sales revenues dropping 30 per cent from $327.7 million to $237.1 million
- Lynas is now preparing for a potential three-month shut down of its Malaysia plant, due to a condition in its license renewal from the Malaysian government
- The plant will remain shut or at very low production levels until it begins receiving MREC feedstock from its Kalgoorlie facility, anticipated in late August
- LYC shares are up 5.13 per cent, trading at $6.87 at 4:00 pm AEDT
Rare earth miner, Lynas Rare Earths (LYC) has produced its highest-ever quarterly production of neodymium-praseodymium (NdPr) and increased its sales revenue and receipts compared to last quarter.
The company’s quarterly report ending March 31, 2023 showed sales revenue of $237.1 million, up from $217.5 million the previous quarter. However, this was down 30 percent from the same time last year, at $327.7 million.
Customer receipts for the quarter came to $229.2 million, up from $168.4 million the previous quarter. Again, this was down from $262 million the same time last year.
Lynas ended the quarter with a cash balance of $1.1 billion.
Total rare earth oxide (TREO) production dropped for the quarter, from 4457 to 4348 quarter on quarter, which Lynas said was due to a supplier shortage of hydrochloric acid.
During the quarter, the company experienced a shut down of its Lynas Malaysia plant for more than three days due to construction works. Despite this, it managed to achieve a new production record of 1725 tonnes of NdPr.
The small shut down was just a taste of what’s to come for the plant, as Lynas Malaysia prepares for a closure on a grander scale.
Lynas Malaysia had its operating license renewed for three years by the Atomic Energy Licensing board (AELB) in Malaysia. However, the renewal came with a condition banning the import and processing of lanthanide concentrate, effective from July 1, 2023.
The company appealed this decision, and will face a hearing on April 28, 2023.
If these conditions remain in place, Lynas Malaysia’s cracking and leaching facility will have to cease operations on July 1. Additionally, the whole facility will be shut down in mid-July until Lynas can transition to receiving MREC feedstock from its under-construction Kalgoorlie facility.
The Kalgoorlie facility has now entered its final phase of major construction activities MREC from Kalgoorlie is expected to land in Malaysia around August 2023.
However, Lynas said it’s expecting the Malaysia plant to be shut down or have very low production for up to three months, followed by a period of reduced production.
LYC shares were up 5.13 per cent, trading at $6.87 at 4:00 pm AEDT.