Lynas Rare Earths (LYC) Q3 2025 earnings summary

Executive summary

• Achieved first production of holmium concentrate from the new heavy rare earth separation circuit, with dysprosium and terbium oxide production expected this quarter or in May and June.

• Quarterly gross sales revenue was A$123.0m, down from A$141.2m in the previous quarter but up from A$101.2m year-over-year.

• Demand for heavy rare earths outside China significantly exceeds current capacity, prompting assessment of further output increases and feedstock options.

• Operations at Mount Weld, Kalgoorlie, and Malaysia are performing at or above expectations, with ongoing improvements and optimization.

• Lynas is positioned as the only commercial producer of separated Heavy Rare Earths outside China.

Financial highlights

• Capital expenditure for next year expected to decrease, with AUD 50–60 million in carryover from Mount Weld expansion and similar levels for sustaining CapEx.

• Closing cash and short-term deposits were A$268.9m, down from A$308.3m in the previous quarter.

• Cash payments for CAPEX, exploration, and development were A$71.3m for the quarter.

• Transitioned Kalgoorlie facility costs from capital to operating account as of February.

• Net interest received was A$3.0m, and net exchange rate adjustment was A$1.8m.

Outlook and guidance

• Production will be managed to match demand, prioritizing value and risk-based customer procurement strategies.

• Market volatility is expected to continue in the June 2025 quarter due to new global tariffs and China export controls.

• Further expansion of heavy rare earth output in Malaysia under consideration, with additional investment and feedstock sources being evaluated.

• U.S. project progress depends on regulatory and cost review, with no willingness to risk the balance sheet; discussions ongoing with the U.S. government regarding additional CapEx.

• Lynas is engaging with customers to develop new sales agreements and expects a sustained market restructure.