Lynas Rare Earths rallies after extending sales in Japan
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The news: Shares in Lynas Rare Earths surged in early trading after the company had announced the extension of its commercial agreement to supply rare earths to Japan, effective until 2038.
Shares rose 13.60% to $20.13 at 10:54am AEDT.
The context: Under the agreement announced on Tuesday, Lynas will supply up to 7,200 tonnes per annum of NdPr (Neodymium and Praseodymium), a combined alloy of two specific rare earth elements, while Japan Australia Rare Earths (JARE) will purchase 5,000 tonnes of NdPr per annum for Japanese industries.
The company said 75% of all Heavy Rare Earth (HRE) produced will be commercially available to Japanese businesses, while JARE will purchase 50% of all HRE oxides produced, at no loss to Lynas.
Lynas and JARE have set the price floor to USD110 ($154) per kilogram of Ndpr for Japanese businesses.
What they said: “This new agreement will ensure continued reliable supply of rare earths products that are strategically important to Japanese industry and its global market,” Lynas CEO Amanda Lacaze said.
“The implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations,” she added.
The source: ASX
