Lynas Rare Earths enjoyed an uplift in sales revenue in the December quarter as it experienced its highest price in 18 months.
Sales revenue rose to $141.2 million and sales receipts reached $145.9 million off the back of a $49.2/kg selling price, Lynas’ highest mark since the April 2023 quarter. This was achieved due to Lynas’ focus on high-value strategic customers, its product mix and favourable foreign exchange rates.
Lynas produced 2617 tonnes of total rare earth oxide (REO) in the December quarter, which was lower than planned, reflecting very low production in December.
The company reached its annual lanthanide processing limit in Malaysia for Mt Weld concentrate in late November 2024. This meant downstream production was completely dependent on mixed rare earth carbonate (MREC) feedstock from Kalgoorlie during December.
While there was enough MREC feedstock on hand for December production, Lynas identified issues with impurities in the material which required further treatment, however the chemical inputs for this treatment weren’t available until late December.
“These kinds of challenges are expected when processing new feedstocks and we experienced similar challenges in the early days of the Lynas Malaysia plant,” Lynas said.
“However, the sole focus on MREC processing in December has provided valuable learnings for our team and technical solutions have been identified that will not require additional chemical treatment in the future.
“These solutions are being implemented progressively.”
Quarterly REO production was still 67 per cent higher than the December quarter of 2023.
Lynas also recognised the official opening of its new Kalgoorlie processing facility.
Australia’s only downstream rare earths processing facility of this scale and complexity, Kalgoorlie was built in less than two and half years from the receipt of full approvals.
The December quarter also saw the commissioning and integration of the first stage of Lynas’ Mt Weld expansion project, which involved the integration of a dewatering circuit.
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