Lynas Rare Earths is capitalising on the world’s insatiable appetite for battery metals after posting a record quarter to March 31.
The company enjoyed sales revenue of $327.7 million for the first three months of 2022, an increase from $202.7 million from the quarter prior.
This came as the price for neodymium-praseodymium (NdPr) continues to rise. In the third quarter of the 2021 financial year, Lynas observed the domestic price for NdPr oxides in China to be $US68.1 ($91.8) per kilogram.
The NdPr price clocked $US100 ($134.8)/kg in the second quarter of the 2022 financial year before climbing to $US145.4 ($196)/kg in February. In March, the commodity was trading at $144.2 ($194.4)/kg.
“Demand for Lynas products remained strong during the quarter, particularly for the NdPr product family in the magnet market segment,” Lynas said in its quarterly report.
“Lynas continues to receive many approaches from end users seeking to secure their raw material sourcing over the longer term and is engaged in productive discussions with a number of these end users.”
Buoyant market conditions were complemented by the strong performances of Lynas’ Mt Weld project in Western Australia and its Malaysia processing plant. 1687 tonnes of NdPr were produced during the quarter – a record number and 19 per cent more than the three months prior.
More than 600 tonnes of NdPr was produced in March alone – the highest monthly NdPr production figure since the beginning of the COVID-19 pandemic.
Lynas prioritised Mt Weld debottlenecking initiatives during the quarter to maximise production to Malaysia. This included supplementing commercial shipments with charter vessels to transport concentrate from Fremantle Port to Malaysia amid global shipping delays.
The company also prioritised preventative maintenance during the quarter and built inventories of critical chemicals and reagents to minimise supply risks.
In early March, Lynas announced fresh exploration findings at Mt Weld, which returned continuous rare earth element (REE) mineralisation beneath the current open pit.
A 1010m-deep exploration hole drilled below the current Mt Weld mine design and ore reserve returned an average grade of 2.22 per cent rare earth oxides (REO).