Lynas Corporation has increased its global presence as a rare earths producer, posting record production and a surge in profit in the 2019 financial year.
The company’s results reflect what managing director Amanda Lacaze described as a year that presented “extremely challenging regulatory and market conditions.”
Lynas achieved record rare earth oxide production of 19,154 tonnes and neodymium and praseodymium (NdPr) production of 5898 during the period.
Lacaze attributed the growth to increased interest in the company as an alternative supply source from China.
“Lynas holds a unique position as the only significant rest of world rare earths miner and producer and interest in our company has intensified following recent geopolitical and macroeconomic issues,” Lacaze said.
Lynas reported a net profit after tax of $80 million in the 2019 financial year, compared with $53.1 million in the previous corresponding period.
Investor interest was also bolstered throughout the year as Lynas’ operating licence was renewed by the Malaysian Government for the next six months.
Looking ahead, market volatility in the second half of 2019 has led to Lynas reserving NdPr production for the current and future needs of “strategic customers.”
Lynas’ growth is expected to come from a mining campaign at the Mt Weld mine in Western Australia, which will result in an increase in ore and concentrate quality.
The company flagged growth in demand for its rare earth products outside of the Chinese market, also stating that the vast majority of rare earths to be produced this year will be sold to customers outside the Asian country.
Lynas stated it would continue to progress its 2025 growth plans to meet forecast demand increases, while providing further updates as details on the plan are finalised.