Lynas makes ‘significant progress’ across operations

The Mount Weld rare earths project. Image: Lynas Rare Earths….

The Mount Weld rare earths project. Image: Lynas Rare Earths.

Despite a decline in revenue and sales for the first half of the 2023–24 financial year (H1 FY24) compared to the same period in FY23, Lynas Rare Earths made great progress across its operations in Australia and Malaysia.

The Lynas Malaysia plant recommenced its operations in January without incident after the company carried out upgrade works during a six-week shutdown.

The works were designed to enable separation capacity of 10.5 kilotons of neodymium and praseodymium per annum and improve the reliability of the cracking and leaching plant.

“The 2024 financial year is a transitional year for Lynas and the progress achieved in the first half of the year has established an excellent foundation for our future success,” Lynas Rare Earths managing director and chief executive officer Amanda Lacaze said.

“This included the variation to the Malaysian operating licence which allows for the continued import and processing of lanthanide concentrate from our Mount Weld mine and provides a continuing path for our operations in Malaysia.”

Construction activities at Lynas’ Kalgoorlie project in Western Australia were largely completed, with the first feed of material from the Mount Weld rare earths project being introduced to the Kalgoorlie rare earths processing facility last December.

The Mount Weld expansion project remains on track, with the WA Environmental Protection Authority backing the project last November by recommending its life of mine proposal be environmentally approved.

“Notwithstanding the exciting expansion and exploration activities undertaken in the half year, and the low market price environment, I am pleased to report a profitable first half for the business,” Lacaze said.

“Continued demand for Lynas products and careful management of inventory and operating costs resulted in revenue of $234.8 million, earnings before interest, taxes, depreciation, and amortisation of $62.6m and a net profit (after tax) of $39.5 million.

“During the half year, Lynas invested $347 million in capital projects, primarily related to the Lynas Kalgoorlie and Mount Weld expansion projects, and ended the period with a strong cash balance of $686.1 million.”

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