Lynas Rare Earths (LYC) Q1 2025 earnings summary

Executive summary

• Q1 FY25 gross sales revenue was A$120.5m, with sales receipts of A$127.5m, reflecting continued low rare earth prices and managed production levels in line with demand.

• Total rare earth oxide (REO) production reached 2,722 tonnes, with NdPr production at 1,677 tonnes; approximately 100 tonnes of NdPr remained at port for Q2 sales.

• Mt Weld achieved record monthly production following the commissioning of stage one of its expansion, shifting the bottleneck to the mill, which will be addressed in stage two.

• Kalgoorlie and Malaysian facilities are performing in line with expectations, with ongoing improvements in recovery and efficiency.

• The company remains focused on margin over volume, prioritizing cost management and operational efficiency amid low rare earth prices.

Financial highlights

• Closing cash and short-term deposits at quarter-end were A$414.3m, down from A$523.8m in the previous quarter.

• Cost per kilo of NdPr was around AUD 53 for the quarter, with ongoing efforts to improve cost efficiency.

• Cash payments for capex, exploration, and development totaled A$125.0m for the quarter.

• The company and Northern Rare Earths were the only rare earth producers to report profits over the last six months.

• Net cash outflows included A$89.7m for production, admin, and royalties, and A$8.1m for income taxes.

Outlook and guidance

• Targeting 10,500 tons of NdPr annual production capacity by the end of the financial year, up from the current 7,000 tons.

• Stage 2 of the Mt Weld Expansion Project is on track for completion and progressive commissioning by end of FY25.

• Kalgoorlie Facility ramp-up will continue, with production aligned to market demand and increased Mt Weld output.

• Ongoing investments in plant upgrades and new equipment are expected to further increase capacity and efficiency.

• The company expects medium- and long-term demand growth across multiple end markets, including automotive, wind turbines, and electronics.