Soft prices weigh on Lynas’ March quarter performance
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The news: Rare earths producer Lynas has recorded lower March quarter sales revenue after deciding to hold on to stocks in the low price environment.
The numbers: The company recorded sales revenue of $101.2 million, a sharp drop from the $242.8 million a year ago when it was operating at full capacity.
Production was at 3,545 rare earth oxide (REO) tonnes, down from 4,348 REO tonnes a year ago.
The context: Lynas CEO Amanda Lacaze said the weak sales revenue reflected the low average neodymium and praseodymium (NdPr) prices during the quarter and the company’s decision to hold both NdPr and mixed heavy rare earths (SEG) inventory rather than sell during a low price environment.
However, production rates in Malaysia have improved after a six-week shutdown to upgrade its operations that saw production more than halve during the December quarter.
The company is also investing in the Kalgoorlie and Mount Weld expansion projects in Western Australia and said it expects to start earthworks at the planned US Rare Earths Processing Facility by the end of 2024.
The source: ASX announcement
