Lynas Rare Earths (LYC) investor relations material

Executive summary

• Achieved record operational and financial performance in FY26, with revenue of $977.9m, highest-ever average selling price of $80.7/kg REO, and significant improvements in safety and production processes.

• Successfully ramped up Mount Weld expansion and Kalgoorlie facility, resolving quality issues and advancing heavy rare earth separation; first production of Samarium oxide and expanded product suite at Lynas Malaysia.

• Entered strategic partnerships and MoUs with JS Link, LS Cable, Noveon, and others to expand downstream capacity, magnet-making, and reduce China dependency.

• Advanced sustainability initiatives, including commissioning a 65MW hybrid renewable power station at Mt Weld and water recycle plant, achieving 93% renewable content in 2H FY26.

• Malaysian operating licence renewed for 10 years, providing long-term investment certainty.

Financial highlights

• Net Profit After Tax surged to $222.4m, up from $8.0m in FY25; sales revenue rose to $977.9m from $556.5m; EBITDA increased to $386.0m from $101.2m.

• Cash and short-term deposits reached $1,209.1m as of June 30, 2026, supported by equity raising and operational performance.

• Capital investment in property, plant, equipment, and mine development totaled $178.3m (FY25: $430.8m).

• G&A expenses increased by AUD 34 million, with AUD 23 million attributed to underabsorbed costs during Kalgoorlie ramp-up and AUD 10 million to one-time leadership changes.

• Cost of sales increased to $585.5m, reflecting higher fixed costs and input sourcing outside China.

Outlook and guidance

• Focus on ramping up assets and optimizing production in line with customer demand and market growth, with continued strong demand for rare earth permanent magnets outside China.

• Ongoing efforts to secure additional offtake agreements with OEMs and magnet makers, with more deals anticipated.

• Plans to accelerate access to dysprosium-rich zones at Mount Weld and evaluate new resource opportunities.

• Continued investment in R&D, downstream projects, recycling initiatives, and capacity expansions at LAMP.

• Enhanced government engagement and capital allocation to support growth ambitions.