Lynas Corporation Reports Strong Operational Performance

Lynas Corporation (ASX: LYC), a global rare earths producer, has released its quarterly report for the period ending June 30, 2023, showcasing robust operational achievements and record-breaking production figures. Here are the key highlights and insights from the report:

Source: Kapitales Researc

• Operational Success: Lynas recorded its highest-ever quarterly production of NdPr (Neodymium and Praseodymium) at 1,864 tonnes, and the Mt Weld site achieved record quarterly concentrate production. The company continues to build inventory as it prepares to launch the Kalgoorlie Rare Earths Processing Facility.
• Market Challenges: External market dynamics, such as soft demand for NdFeB magnets in Japan and China's oversupply of La-Ce, led to lower market prices for rare earth materials during the period. Sales revenue was AU$157.5 million, with sales receipts at AU$188.9 million, reflecting these price fluctuations.
• Progress on Kalgoorlie Facility: Major construction activities for the Kalgoorlie Rare Earths Processing Facility are near completion, with full plant commissioning underway. The facility is targeting first production of Mixed Rare Earth Carbonate (MREC) in September 2023.
• Safety and Environment: Lynas emphasizes safety, with a Company-wide 12-month rolling Lost Time Injury Rate of 1.2 per million hours worked and a Total Recordable Injury Rate of 3.4 per million hours. Safety initiatives have been launched following Lost Time Injuries at multiple sites.
• Lynas Growth Projects: The Mt Weld Expansion Project is progressing well, and Lynas has acquired a 149-acre greenfield site in Seadrift, Texas, for the planned U.S. Rare Earths Processing Facility.
• Market and Sales: Despite low prices for NdPr and La-Ce due to market conditions, Lynas remained stable, thanks to existing long-term customer sales contracts and demand for Heavy Rare Earths.

Lynas remains committed to maintaining safety standards, expanding its facilities, and adapting to market challenges. The corporation's positive performance bodes well for its strategic growth and continued contribution to the global rare earths industry.

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