Lynas Rare Earths (LYC) H2 2024 earnings summary

Executive summary

• EBITDA for FY24 was AUD 132.1 million, down from AUD 377.7 million in FY23, reflecting resilience amid the lowest rare earth prices since 2020 and subdued demand.

• Net profit after tax was AUD 84.5 million, down from AUD 310.7 million in FY23, with sales revenue at AUD 463.3 million versus AUD 739.3 million in FY23.

• Major operational achievements included the first shipment from the Kalgoorlie plant, completion of significant works at the Malaysian facility, and substantial upgrades to Mount Weld's mineral resources and reserves.

• Secured a variation to the Malaysian operating license, enabling continued import and processing of lanthanide concentrate and supporting further investment.

• Maintained profitability and a strong balance sheet through cost efficiencies, operational discipline, and proactive sales management.

Financial highlights

• EBITDA was AUD 132.1 million, down from AUD 377.7 million in FY23, with net profit after tax at AUD 84.5 million.

• Sales revenue declined to AUD 463.3 million from AUD 739.3 million in FY23.

• Operating costs reduced by 17%, with total OpEx (excluding G&A) at AUD 280 million, and cost of sales at AUD 330.6 million.

• Cash and short-term deposits stood at AUD 523.8 million as of June 30, 2024.

• Average selling price per kg REO was AUD 38.1, down from AUD 46.2 in FY23.

Outlook and guidance

• Targeting demonstration of 10,500 tpa separated NdPr production capacity by year-end, with ramp-up aligned to market demand.

• Production in FY25 expected to be weighted toward the second half, with flexibility to adjust output based on market recovery and Chinese quota developments.

• CapEx for FY25 guided at AUD 400–500 million, mainly for Mount Weld expansion; capital programs will be managed in response to market conditions.

• First production of separated Dy and Tb in Malaysia targeted for CY25.

• Early works on a 65MW hybrid renewable power station at Mount Weld commenced, aiming for operation in CY26.