Australia’s Lynas Rare Earths reported a nearly 4% rise in its second-quarter sales revenue on Friday, benefitting from higher quality product and favourable foreign exchange rates.
Its total rare earth oxide for the second quarter was 2,617 metric tons, compared to 2,722 tons reported last quarter. The output of neodymium and praseodymium, elements used to make permanent magnets, fell nearly 30% to 1,292 tons from the previous quarter.
“Unfortunately, December production was affected by technical issues with impurities in the MREC (mixed rare earth carbonate) feedstock that required additional treatment,” Lynas said in a statement.
The chemical elements needed for the additional treatment were unavailable on site till Christmas of 2024, leading to lower production outcomes in December.
The world’s largest producer of rare earths outside of China raked in an average selling price of A$49.2 per kilogram for its product range during the quarter, compared with A$34.8 per kg last year.
The rare earths miner also said that despite a slight improvement in the NdPr market price at the start of the quarter, market conditions remained challenging.
The company said its sales revenue rose to A$141.2 million ($87.69 million) in the three months to Dec. 31, compared with A$136.2 million a year ago, missing Visible Alpha consensus estimate of A$154 million.
Rare earth metals are essential for industries like electric vehicles and defence due to their powerful magnetic properties, which contribute to increased energy efficiency.
($1 = 1.6103 Australian dollars)
(By Rajasik Mukherjee and Aaditya Govind Rao; Editing by Alan Barona)
