Highlights

  • Quarterly gross sales revenue of LYC rose to AUD 200.2 million.
  • Total REO production reached 3,993 tonnes, including 2,003 tonnes of NdPr.
  • Cash and short-term deposits increased to AUD 1.06 billion following equity raising.

Lynas Rare Earths Ltd (ASX:LYC) reported a positive start to FY26, with gross sales revenue climbing to AUD 200.2 million for the September quarter, up from AUD 170.2 million in the previous quarter and AUD 120.5 million in Q1 FY25. Sales receipts totalled AUD 171.3 million, reflecting growing demand for rare earth products. Closing cash and short-term deposits surged to AUD 1.06 billion, up from AUD 166.4 million in the previous quarter, following a successful equity raising of approximately AUD 932 million from institutional placement and retail shareholders.

Production Milestones and New Heavy Rare Earths Output
The company reported total ready-for-sale rare earth oxide (REO) production of 3,993 tonnes during the quarter, including 2,003 tonnes of neodymium-praseodymium (NdPr). Notably, Lynas recorded the first production and shipment of separated heavy rare earth oxides—dysprosium (Dy) and terbium (Tb)—to customers. These products were priced to reflect their strategic value outside China, marking a key step in expanding the company’s rare earth portfolio.

Strategic Partnerships Drive Global Expansion
Lynas advanced its Towards 2030 growth strategy through strategic agreements. In July, it signed a Memorandum of Understanding (MoU) with Korean magnet manufacturer JS Link to develop a sustainable rare earth magnet supply chain in Malaysia. Following the quarter, a similar MoU was signed with U.S. manufacturer Noveon Magnetics to establish a scalable domestic U.S. supply chain for permanent magnets. Both agreements are non-binding and subject to definitive contracts.

Commissioning and Operational Progress
Commissioning of Lynas 2025 facilities continued, with the Mt Weld ore processing plant and hybrid power station moving toward full operation. The solar farm is fully operational, and two of four wind turbines have been commissioned, providing approximately 74% renewable energy for the site. CAPEX payments declined to AUD 65.7 million for the quarter, consistent with the conclusion of Lynas 2025 major capital projects.

Geopolitical Developments and Market Impact
Lynas highlighted recent international agreements aimed at securing rare earth supply chains. Australia and the U.S. signed a Framework for Securing Critical Minerals and Rare Earths, while additional agreements were signed between the U.S., Malaysia, and Japan. These developments come amid China’s announcement to tighten export controls on rare earth refining and downstream processing, prompting increased demand for Lynas’ non-China sourced materials.

Financial and Market Outlook
The company continues to manage production and sales carefully in response to global market conditions and regulatory changes. NdPr sales reached record volumes, supported by strong demand from Japanese magnet makers. The average selling price across all rare earth products was AUD 54.3/kg, contributing to a 66% year-on-year growth in quarterly revenue.

Safety and Sustainability Commitment
Lynas maintained safety standards, recording a lost time injury rate of 1.8 per million hours worked and a total recordable injury rate of 3.5 per million hours. Operations comply with national and international safety and sustainability guidelines.

LYC shares were trading 0.20% higher at AUD 15.31 per share at the time of writing on 30 October 2025.