Australia’s Lynas Rare Earths (ASX: LYC) posted a 55% jump in first-quarter revenue on Thursday, helped by record realised prices, while warning that planned shutdowns at its Malaysia and Kalgoorlie facilities would weigh on current-quarter production.
Growing Western demand for non-Chinese critical minerals supply has boosted Lynas’ ability to lock in floor-price contracts above market benchmarks, strengthening pricing even as China remains the dominant player in the rare earths sector.
Floor-price agreements now cover more than half of Lynas’ production, helping lift its average selling price 88% to a record A$102.1 per kg in the quarter ended September 30. The higher prices more than offset a 17.7% decline in rare earth oxide sales volumes.
“The floors cushion Lynas against Chinese price swings and reduce earnings volatility,” said David Tuckwell, chief investment officer at ETF Shares.
Gross sales revenue rose to A$310.1 million ($218.96 million) from A$200.2 million a year earlier, although the result was 18.2% below a Visible Alpha estimate.
Shares of the world’s largest rare earths producer outside China rose 4.2% to post their highest close since October 7.
The miner said its Kalgoorlie processing facility would undergo a planned two-week shutdown in the second quarter of fiscal 2027 during electricity network upgrades.
Lynas also said its Malaysian processing facility would be shut for a month in the December quarter for scheduled maintenance, resulting in lower production volumes compared with the September quarter.
With the price problem largely resolved, results now depend more on delivery and whether Lynas can handle disruptions and keep production steady, Tuckwell said.
For the September quarter, total rare earth oxide production rose 6.5% to 4,254 metric tons, while output of key magnet-material product NdPr was broadly steady.
The results come as Lynas continues its search for a permanent CEO following Amanda Lacaze’s departure in June.
($1 = 1.4162 Australian dollars)
(Reporting by Sherin Sunny, Aamir Shaik Khalid and Shruti Agarwal in Bengaluru; Editing by Leroy Leo and Subhranshu Sahu)
