Lynas Rare Earths rose to a near nine-year high on Monday after the miner released a strong quarterly report.
Quarterly sales revenue hit $185.9 million, up from $110 million in the third quarter, while sales receipts came in at $192 million. Both metrics achieving new records for the company. The result reflected sustained demand for Lynas NdPr (neodymium and praseodymium) products and strong market pricing, as end-users and governments around the world continue to recognise the need for a diversified supply of responsible rare earth materials.
Total REO production was 3,778 tonnes. NdPr production of 1,393 tonnes was a slight improvement on the preceding quarters. The company noted the result was an achievement given continuing challenges presented by the ongoing pandemic, particularly in Malaysia.
During the quarter, the Lynas Malaysia team also managed water supply shortages affecting the Gebeng Industrial Estate. Despite these various challenges, Lynas Malaysia has continued to operate at approximately 75% of Lynas NEXT production rates.
NdPr market prices softened throughout the quarter, representing a slight correction on the increases in previous months. Prices have strengthened again during July. The average China Domestic Price for NdPr was US$69.9/kg for the quarter. Demand for catalyst from the automotive and the fluid catalytic cracking sectors is back to pre-COVID levels, which the company sees continuing in the near future. However, they remain alert to the effect the pandemic can have on end-product demand, logistics and industrial supplies.
Progress continued on the company’s Lynas 2025 projects including the Rare Earth Processing Facility in Kalgoorlie and the proposed integrated U.S. Rare Earths Processing Facility. Detailed engineering and design work for the Heavy Rare Earths facility was submitted to the U.S. Government in line with U.S. Department of Defense milestones. The DoD is now conducting a merit evaluation of the submission.