Lynas Reports Decline in Rare Earth Production for FY2023-24

Lynas

Australian rare earth producer Lynas has reported a significant drop in rare earth oxide output and revenue for the fiscal year ending June 2024. The decline was attributed to lower rare earth prices and a six-week shutdown at its Malaysian processing facility during November and December 2023.

Production Decreases Amid Plant Shutdown

Lynas produced 10,908 tonnes of rare earth oxides (REO) in FY2023-24, representing a 35% decline from 16,780 tonnes the previous year. The output of praseodymium-neodymium oxide (PrNd), a key material used in magnets, also dropped by 8% to 5,655 tonnes. The shutdown, aimed at expanding the facility's PrNd separation capacity, contributed to reduced production, with total REO output falling to 1,566 tonnes during the October-December quarter, down from 4,457 tonnes in the same period the previous year.

Revenue and Profit Drop

Lynas’ sales volumes also took a hit, with 12,158 tonnes of REO sold in FY2023-24, a decrease of 24% from the prior year. Revenue fell by 37% to A$463.3 million, while net profit plummeted by 72% to A$84.5 million. The drop in average sales prices, which fell by 17% to A$38.10 per kilogram, played a significant role in the financial decline.

Despite these challenges, Lynas managed to reduce total costs by 17%, focusing on improving efficiency across its rare earth operations. The company invested A$579.3 million in capital and mine development projects during the fiscal year, including the expansion of the Mount Weld project and the construction of the Kalgoorlie rare earth processing facility.

Lynas continues to expand its Mount Weld rare earth project to feed both its Malaysian processing plant and the new Kalgoorlie facility. The Mount Weld project has seen significant growth, with its total rare earth oxide (TREO) resources increasing by 46% since 2018. The project’s ore reserves also rose by 63% to 32 million tonnes in 2024.

The Kalgoorlie facility began producing mixed rare earth carbonate (MREC) in the April-June 2024 quarter, and the first shipment has already been dispatched to the Malaysian plant. The continued expansion of both facilities is expected to meet rising market demand for rare earth materials.