REE producer Lynas reports half-year net profit of A$150M despite ‘significant' production challenges
(Kitco News) - Rare earths producer Lynas (ASX: LYC, OTC: LYSDY) reported yesterday that for the half year ending 31 December 2022, the company achieved revenue of A$370 million (previous period: A$314.8 million) and a net profit of A$150.1 million (previous period: A$156.9 million).
The company said that its closing cash balance of A$934.2 million reflects the strong business performance during the period.
“These results were achieved despite significant production challenges due to water supply issues in the first quarter and the start of the second quarter as well as rapid increases in costs, particularly for chemical inputs,” stated CEO and Managing Director Amanda Lacaze.
“Our team remains focused on increasing operational efficiencies to mitigate the continuing high cost environment. At the same time, increasing production to meet strong demand from our key customers and delivering on our exciting growth projects remain key priorities,” she added.
According to a company press release, while rare earths market pricing decreased slightly from the highs experienced at the end of the 2022 financial year, market conditions remained stable and “an optimized product mix enabled the team to achieve an improved average selling price.”
Lynas also pointed out it continues to see increased demand from the company’s customers.
Lynas Rare Earths is the world's only significant producer of separated rare earth materials outside of China. The company's Mt Weld mine in Western Australia is acknowledged as one of the world's premier rare earths deposits.
The company also operates the world's largest single rare earths processing plant in Malaysia where it produces high-quality separated rare earth materials for export to manufacturing markets in Asia, Europe and the United States.
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