Lynas Rare Earths has posted steep increases in all the core key performance indicators in the 2021–22 financial year (FY22), headlined by a 244 per cent increase in its net profit after tax (NPAT).
The miner’s NPAT climbed from $157.1 million in FY21 to $540.8 million in FY22, which came as the neodymium-praseodymium (NdPr) prices remained 70–80 per cent higher in FY22 than FY21.
Lynas’ revenue jumped from $489 million to $920 million year-on-year, while the EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 156 per cent to $601.2 million.
Lynas chief executive officer and managing director Amanda Lacaze said the record result left the company in a strong financial position.
“Closing cash at $965.6 million allows us to confidently progress our various growth initiatives,” she said.
“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.”
Lynas has an ambitious 2025 growth strategy in play, which aims to bolster the rare earths supply chain outside of China.
Construction for Lynas’ Kalgoorlie rare earths processing facility in WA was 40 per cent complete at the end of FY22. Once built, this will be the key processing plant for the company’s Mt Weld rare earths operation.
In August, Lynas announced a $500 million project to expand Mt Weld’s production capacity from the previously announced 10,500 tonnes per annum (tpa) of NdPr to 12,000tpa. The miner will look to achieve this growth in 2024.
Lacaze said the rare earths market was growing at pace as the renewable energy transition gains steam.
“Lynas has a decade-long track record in responsible rare earths production and this project is designed to ensure we continue to grow with the market as a supplier of choice,” she said when the project was announced.
“This investment is supported by our high-grade, long-life and reliable source of feedstock, the remarkable Mt Weld ore body.
“Having a long-life resource is an essential foundation for success in the rare earths market and the recent 1km-deep drilling has demonstrated Mt Weld’s potential to supply feedstock for many years into the future.”