Australian rare earths firm Lynas has reported a fall in rare earth output and revenue for its July 2023–June 2024 fiscal year, because of lower rare earth prices and a six-week shutdown during November-December 2023.
Lynas produced 10,908t of rare earth oxide in the 2023-24 fiscal year, down by around 35pc from 16,780t the previous year. Output of praseodymium-neodymium oxide (PrNd), a critical rare earth magnet raw material, fell by around 8pc to 5,655t.
The company conducted the shutdown at its Malaysian processing facility in the October-December quarter last year to expand its PrNd separation capacity to 10,500 t/yr by December 2024. The shutdown reduced its total production of rare earth oxides to 1,566t from 3,609t in the previous quarter and 4,457t in October-December 2022. Its output of PrNd oxide dropped to 901t, down from 1,526t the previous quarter and 1,508t in October-December 2022.
Its sales for the 2023-24 fiscal year totalled 12,158t of rare earth oxide, lower by 24pc from a year earlier. Lynas posted revenues of A$463.3mn ($314mn), a 37pc year-on-year fall. Its net profit fell by 72pc to A$84.5mn, as its average sales prices dropped by 17pc to A$38.10/kg.
Argus assessed the average price for praseodymium-neodymium oxide minimum 99pc ex-works China at an average of Yn435.77/kg ex-works for July 2023-June 2024, lower by around 32pc from an average of Yn639.25/kg ex-works during July 2022-June 2023.
But the firm's total costs fell by 17pc on the year to A$330.6mn in the 2023-24 fiscal year, reflecting its continued focus on capturing efficiencies across the rare earth business, Lynas said.
Lynas paid A$579.3mn in the 2023-24 fiscal year to invest in capital and mine development projects, primarily related to the Mount Weld expansion project in Western Australia, the new Kalgoorlie rare earth processing facility located near Mount Weld, as well as the capacity and efficiency projects at its Malaysian plant.
The firm continues to expand the Mount Weld project to feed its Lynas Malaysia plant and build inventories for the new Kalgoorlie facility. The project completed construction of the first stage of concentrate dewatering and began commissioning in the April-June 2024 quarter, with the second phase expected to be finalised by the end of the 2024-25 fiscal year.
The Mount Weld site currently has mineral resources of 106.6mn t compared with 55.4mn t in August 2018, with its continued total rare earth oxide (TREO) higher by 46pc from 3mn t to 4.39mn t. Itsrare earth ore reserves in 2024 have risen by 63pc against August 2018 to 32mn t, with its continued TREO rising by 22pc from 1.69mn t to 2.06mn t.
Lynas continues to ramp up the Kalgoorlie facility as planned, to align with increased production at Mount Weld and Lynas Malaysia, and with market demand. The Kalgoorlie facility started production of mixed rare earth carbonate (MREC) in the April-June 2024 quarter and dispatched the first shipment of MREC to Lynas Malaysia.
