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Highlights

  • Lynas reports strong quarterly sales growth and continues progress towards its 2025 production targets.

  • Commissioning of Heavy Rare Earth separation circuit marks a major industry milestone.

  • Company well-positioned to support western supply chains amid tightening Chinese export restrictions.

Lynas Rare Earths Ltd (ASX:LYC) shares are gaining attention on Monday following a positive response to its quarterly report. At the time of writing, Lynas shares are trading 3% higher at $8.56.

The rare earths producer revealed a quarterly sales revenue of $123 million, reflecting a 21.5% increase compared to the same period last year. Sales receipts rose by 15.7% to $124.6 million over the prior corresponding quarter. 

During the third quarter, Lynas reported total rare earth oxide (REO) production of 1,911 tonnes. Of this, 1,509 tonnes were NdPr (Neodymium-Praseodymium) products, critical components for electric vehicle motors and wind turbines.

In addition to solid operational performance, the company highlighted ongoing efforts to meet its Lynas 2025 target of producing 10,500 tonnes of REO annually. Maintenance activities were undertaken at its Lynas Malaysia facility, while process enhancements were implemented at its Kalgoorlie plant to improve the quality of Mixed Rare Earth Carbonate (MREC).

Progress also continued on Lynas’ U.S. expansion project. However, challenges at the Seadrift site related to wastewater management have prompted a re-engineering of the project. The company is currently engaged in discussions with the U.S. Government about securing additional funding to address these changes, especially as global tariffs could potentially raise project costs.

One of the most significant developments during the quarter was the commissioning of Lynas’ new Heavy Rare Earth (HRE) separation circuit. The company has already produced a small quantity of Holmium concentrate and has begun separating Dysprosium (Dy). The first production of Dy is expected in May, with Terbium (Tb) production anticipated to commence in June.

Management described the commissioning of the HRE circuit as a major milestone not just for Lynas, but for the global rare earths sector. Once fully operational, Lynas will be the only commercial producer of separated Heavy Rare Earth products outside of China.