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Lynas profit soars on rare earths demand

Lynas

Lynas Rare Earths has reported a record half-year profit as the global rare earths demand continues to strengthen.

The company posted a net profit after tax (NPAT) of $156.9 million in the second half of 2021, a marked increase from the $40.6 million NPAT Lynas reported in the second half of 2020.

This came as Lynas’ sales revenue jumped to $314.8 million, which reflected the buoyant rare earth market conditions across the half-year.

“Our customers remain optimistic about demand growth and market conditions are robust, as shown by the NdPr (neodymium and praseodymium) market price which exceeded $US100 ($139.6) per kilogram in November 2021 for the first time since 2011,” Lynas managing director and chief executive officer Amanda Lacaze said.

“Our team remains highly focused on delivering results, whilst managing the ongoing challenges of the pandemic. We continue to improve our ability to deal with these challenges, and we remain focused on the health and safety of our people and our host communities.

“Pleasingly, a number of Lynas 2025 growth project milestones were achieved during the half year and subsequently, which will provide a strong foundation to meet accelerating demand growth.”

Lynas’ 2025 strategy is centred around several key objectives, including the continued growth of the company’s flagship Mt Weld project in Western Australia.

A resource extension drilling program was completed towards the end of 2021 as part of the company’s Mining Campaign 4-1 initiative. This included 7220m of reverse circulation (RC) drilling to further Mt Weld’s potential.

In early February, the company received ministerial approval from the Western Australia Government for the construction and operation of its Kalgoorlie rare earth processing facility. Lynas awaits secondary approvals before the project is implemented.

Lynas produced 7375 tonnes of rare earth oxides in the half-year. The company’s share price was $8.95 at the time of writing.

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