Highlights

  • Lynas Rare Earths shares jumped by 6.10% to AUD 16.20 on 21 January 2026 amid Q2 FY26 quarterly results.
  • Gross sales revenue for Q2 FY26 climbed to AUD 201.9 million, above prior quarter.
  • NdPr production fell to 1,404 tonnes amid operational disruptions at key facilities.

Lynas Rare Earths Ltd (ASX:LYC) shares recorded 6.10% jump during the trading session on 21 January 2026, delivering a one-year return of 135.17%. The share price movement follows the release of the company’s Q2 FY26 quarterly report, which showed higher revenue and average selling prices, while production volumes were softer due to operational disruptions.

The surge in the company’s share price was supported by its favourable financials, for the December quarter (Q2 FY26), Lynas reported gross sales revenue of AUD 201.9 million, slightly above the AUD 200.2 million recorded in the prior quarter (Q1 FY26) and significantly ahead of AUD 141.2 million in Q2 FY25. Sales receipts were AUD 185.0 million, up from AUD 171.3 million in the September quarter. Closing cash and short-term deposits were AUD 1,030.9 million, down modestly from AUD 1,060.0 million at the end of the prior quarter.

Production Hurdles Offset by Higher Prices

However, the December quarter was shaped by operational disruptions that weighed on production, with NdPr output for the period reported at 1,404 tonnes, around 30% lower than the previous quarter.

These lower volumes reflected a combination of temporary disruptions and scheduled downtime across Lynas’ processing network. Power supply interruptions at the Kalgoorlie facility during early November affected operating continuity, while major planned maintenance at the Malaysian cracking and leaching plant further constrained output. According to the quarterly report, both facilities returned to stable operations toward the end of December, with restart activities extending into early January.

Despite these production headwinds, pricing conditions moved in the opposite direction over the quarter. The average selling price across Lynas’ rare earth product portfolio rose to AUD 85.60 per kg, supported by higher benchmark pricing and an increasing share of sales completed at prices independent of market indices.

Future Outlook and Expansion Plans

Looking beyond the December quarter, the company also pointed to progress under its Towards 2030 growth strategy. Work commenced during the quarter on plans announced on 29 October 2025 to expand the heavy rare earths separation circuit at Lynas Malaysia. This includes modifications to existing circuits to enable Samarium production, with first output forecast for Q4 FY26, alongside detailed engineering work for the broader heavy rare earth separation facility.