Lynas locks in price floors as revenue jumps 55%
Lynas is using dysprosium and terbium supplies to help secure longer-term relationships with magnet makers.
Australian rare earths company Lynas Rare Earths secured more than half of its production's minimum prices, leading to a 55% increase in revenue. Average selling prices rose 88% to A$102.1 ($72) per kg, while volumes dropped 18% from the previous year. The gains were due to stronger market prices, premiums, and bundling of light and heavy rare earths.
Interim CEO Pol Le Roux attributes the trend to original equipment manufacturers seeking alternative suppliers outside China. The contracts provide Lynas with protection against Chinese price fluctuations. However, separating rare earths commercially remains challenging. Lynas sold 3,039 tonnes of rare earth oxides and produced 4,254 tonnes, with neodymium-praseodymium oxide reaching a quarterly record of 2,082 tonnes.
Production is expected to fall during maintenance shut downs in December and February. The company plans to reduce bottlenecks and improve reliability to increase production in later quarters. Lynas plans to acquire Meteoric Resources in a deal valued at A$968 million.
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