Lynas gains on Q3 revenue lift
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More news: Shares in Lynas were up 3.3% to $8.56 in early trading on the ASX after the rare earths producer recorded a 22% increase in third quarter sales revenue amid a focus on high-value clients.
The company reported lower production in the March quarter amid maintenance issues. But it said it is ideally positioned to contribute to supply chain diversification for customers after the two-way flow of rare earth materials between the US and China ceased as a result of tariffs and the Chinese government introduced export restrictions on heavy rare earths.
Lynas post lower production in March quarter, expects volatile conditions
The news: Rare earths producer Lynas has reported lower production in the March quarter but higher sales revenue as it focused on supplying the highest value strategic customers.
The numbers: The company recorded sales revenue of $123 million for the three months to March, a 20% increase from a year ago but down on its December quarter.
Quarterly rare earth oxide (REO) production totalled 1,911 tonnes, down from 3,545 tonnes a year ago, while NdPr production was 1,509 tonnes, down from 1,724 tonnes a year ago.
The context: The company attributed lower production to kiln maintenance in Malaysia and process modifications at the Kalgoorlie facility. CEO Amanda Lacaze said Lynas continued to focus on supplying its highest value strategic customers as the two-way flow of rare earth materials between the US and China ceased as a result of tariffs and the Chinese government's introduction of export restrictions on heavy rare earths.
The company said that as the largest supplier of separated rare earths ex-China, it is ideally positioned to contribute to supply chain diversification. However, it expects market volatility to continue in the June quarter.
The source: ASX
