Rare earths demand pushes Lynas profits up 244 per cent

Lynas Kalgoorlie

It’s a great time to be a rare earths producer. Riding the back of a resurgent market for the commodities, Lynas Rare Earths has announced record result for 2022, with the company receiving $920 million in revenue and a net profit after tax of $540.8m.

By contrast, NPAT for last year was $157.1m.

EBITDA of $601.2m showed a similar jump in figures, from $235.3m in FY2021.

Lynas Rare Earths managing director Amanda Lacaze closing cash at $965.6m allows the company to confidently progress its various growth initiatives.

“This is important as Lynas is uniquely positioned with a resilient supply chain for rare earth materials from our facilities in Western Australia and Malaysia to our partners in Vietnam, Japan and Europe. This is valued by our key customer base,” she said.

“Favourable market conditions and strong demand for Lynas’ rare earth materials saw sales revenue increase by 88.1 per cent and NPAT increase by 244 per cent from the 2021 result.

“Rare earths prices were sustained at high levels during the second half of the year, and the NdPr market price remained 70-80 per cent higher than in the same period last year.

“Ongoing measures implemented across the business mitigated some of the challenges presented by the external environment, including shipping delays, input cost increases, water supply issues and the ongoing effects of the COVID-19 pandemic. The Lynas team prioritized production to meet the needs of our customers and remained focused on growing the business to support customer growth.

“Importantly for our shareholders, we made good progress on the Lynas 2025 growth project and achieved a number of key milestones during the year.”

The objectives of the Lynas growth plan are to grow with the market, diversify the company’s industrial footprint, and increase the product range for customers. The company was pleased to have made progress on these initiatives during the year and is now working to accelerate growth capacity at the Mt Weld site.

Construction of the Kalgoorlie Rare Earths Processing Facility progressed during the year. All necessary approvals for the Kalgoorlie project were received, 100 per cent of equipment was ordered, and construction works at the end of FY2022 were over 40 per cent complete.

Lynas was also awarded a $US120m contract by the US Department of Defense for construction of a commercial heavy rare earths separation facility in the US during the year.

Lacaze said demand for rare earth materials was accelerating and Lynas is investing in the further development of the Mt Weld resource and beneficiation circuit.

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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