Lynas Rare Earths' quarterly revenue surges as higher prices offset lower production
Australia's Lynas Rare Earths reported a 43% rise in second-quarter revenue on Wednesday, as higher selling prices eclipsed a production shortfall caused by power disruptions at its ore processing plant.
Prices of rare earths have been rising as Western countries scramble to reduce dependence on China. In response, Australia has been mulling a price floor and new international partnerships to support rare earth projects and build alternative supplies.
Lynas, the world's largest producer of rare earths outside China, said the selling prices rose in tandem with higher benchmark prices for the elements.
The average selling price for Lynas' product range was A$85.6/kg during the quarter, higher than A$49.2/kg a year ago.
The upbeat sentiment has also spilled over to January, Lynas said in its statement.
Rare earth elements are crucial for green-energy applications and are used in electric vehicles and smartphones, among other applications.
The company's total rare earth oxide output was 2 382 metric tons, lower than 3 993 metric tons in the previous quarter, as power outages at its Kalgoorlie facility in Western Australia hampered production.
Last year, the firm said there had been a substantial rise in power supply disruptions at the facility, with outages in November resulting in a significant loss in mixed rare earth carbonate (MREC) production.
The Perth-headquartered firm said it had been working to secure off-grid solutions to ensure power stability at the facility.
The Kalgoorlie plant produces MREC, which is later processed into high-purity rare earth oxides.
Lynas posted sales revenue of A$201.9-million ($135.98-million) for the quarter ended December 31, compared with A$141.2 million a year ago.
