Lynas Rare Earths has reported its financial results for the 2023–24 financial year (FY24), showcasing profitability despite a challenging market environment.
The company’s net profit after tax (NPAT) was $84.5 million, a significant drop from $310.7 million in FY23, while revenue fell to $463.3 million from $739.3 million the previous year.
Despite these declines, Lynas remains optimistic about its future growth.
“2024 was both an exciting and challenging year for Lynas Rare Earths,” Lynas chief executive officer and managing director Amanda Lacaze said.
“Whilst a number of major milestones were achieved for our company, inside China demand was subdued for most of the year and rare earths market prices remained stubbornly low.
“Pleasingly, there have been positive movements in the NdPr (neodymium-praseodymium) market price since May 2024.”
Lynas’ achievements included the variation to its Malaysian operating license, allowing the continuation of cracking and leaching operations in Malaysia. The company also achieved first production from its new Kalgoorlie processing facility.
“The construction and commissioning of such a large facility in just over two years from receipt of full construction approvals is a credit to the skills and perseverance of our Kalgoorlie team and the support from our Malaysian experts,” Lacaze said.
Despite a eight per cent decrease in NdPr production, Lynas managed to reduce total costs by 17 per cent, reflecting its ongoing focus on operational efficiencies.
“We are proud of our competitive cost position and, as an integrated rare earths producer, continue to benefit from the inherent advantages of the high-grade Mt Weld rare earths resource,” Lacaze said.
Lynas also made significant investments in its growth pathways in WA and Malaysia.
“In FY24, $579.3 million was invested in capital and mine development projects, primarily related to the new Kalgoorlie rare earths processing facility, the Mt Weld expansion project, and capacity and efficiency projects at Lynas Malaysia,” Lacaze said.
“Notwithstanding this heavy capital investment program, we ended the period with a robust cash balance of $523.8 million.”
Looking ahead, Lacaze said Lynas is focused on fulfilling key customer needs, maximising internal efficiencies and delivering “excellent value for our shareholders”.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
