Lynas Rare Earths posts Q1 revenue slump as low prices weigh
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The news: Mining company Lynas Rare Earths reported a downturn in first-quarter sales and production as rare earths market prices remained low.
The numbers: Lynas posted Q1 sales revenue of $120.5 million, down 5.9% year on year. Production of rare earth oxides fell 24.6% to 2,722 tonnes. Capital expenditure lowered 24.1% to $125 million.
The miner said that the market price for neodymium and praseodymium (NdPr) — two of its core products — recovered slightly at the end of the quarter.
However, its average selling price of $42.5 per kilogram was down 9.4% compared to the previous corresponding period.
The context: Lynas, which reported a 70% slide in full-year profit in August, said that NdPr prices were boosted at the end of the quarter, possibly by a reduction in imported material into China and economic challenges faced by producers at the lower price levels.
The source: ASX announcement
