Lynas Rare Earths Limited (ASX: LYC) is the second largest, rare earths producer in the world. Outside of China, Lynas is the only producer at scale these rare earth commodities. Mt Weld, Western Australia is home to one of the world’s highest-grade rare-earth mines. The concentrate produced here is then shipped to Malaysia where Lynas Rare Earths Ltd operates the world’s largest and most advanced rare earths chemical processing plant in the world.
LYC shares were buoyant today as the company reported 4th quarter results for FY21. Lynas realised sales revenue of A$185.9m and sales receipts of A$192m – both records for LYC. This result reflected sustained demand for Lynas NdPr products and strong market pricing, as end users and governments around the world continue to recognise the need for a diversified supply of responsible rare earth materials.
Total REO production was 3,778 tonnes. NdPr production of 1,393 tonnes was a slight improvement on the preceding quarters. This is an excellent result given continuing challenges presented by the ongoing pandemic, particularly in Malaysia.
The demand for Lynas products, in particular for our NdPr product family, continued to be very strong through the quarter leading to record sales and cash collection. Sales volume also increased in part due to delayed March quarter shipping. Despite the global shortage of semi-conductors which affects all industries and in particular, the automotive industry, the NdFeB market is experiencing very strong growth, supporting the demand for NdPr and the HRE produced by Lynas. At the same time, the demand for catalysts from the automotive and the FCC sectors is back to its pre-COVID levels.
After the spectacular Q4 results, ASX:LYC shares surge over 10% on ASX trading today. At close, LYC share price settled at $7.11 a share. a 7% gain, and a 5-year high for LYC share price.
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