© Stocksak. FILE PHOTO – A small toy figure is seen behind the Lynas Rare earths logo in this illustration, taken November 19, 2021. REUTERS/Dado Ruvic/Illustration
(Stocksak). -Australia’s Lynas Rare Earths reported Thursday a 34.7% increase in first-quarter revenues, aided by an increased demand for specialised metals that are used in electric vehicle components.
The global demand for minerals to power electric-vehicle engines has risen in response to the global push to reduce carbon emissions from fossil fuel-powered vehicles. This has been good news for miners like Lynas.
Rare earth minerals are also used in a variety of goods, such as iPhones or military equipment.
The world’s biggest producer of rare earths other than China reported that its revenue increased to A$163.8m ($106.34m) in the three months ending Sept. 30, as compared to A$121.6m a year ago, and a Barrenjoey estimate to A$146m.
However, the miner saw its quarterly production drop by approximately 44% due to operational difficulties, including a water shortage at its Malaysian plant. It flagged this issue in July.
Production of neodymium, praseodymium (NdPr) was 1,045 tonnes in September quarter. This is compared to 1,255 tonnes a previous year and a Barrenjoey estimate at 903 tonnes.
Lynas stated that NdPr, Nd, and Pr customers (mostly from outside China) continue to predict very strong demand. Lynas also said that FY23 full-year production (at the Malaysia plant) will be consistent with that of FY22.
Lynas achieved an average selling price for its product range of A$49.3 per kg (kg) in the quarter reported, compared with A$44.6/kg last year.
($1 = 1.5404 Australian dollars)