Australia’s Linus Rare Earths on Friday reported a nearly 4% increase in second-quarter sales revenue, benefiting from higher quality products and favorable exchange rates.
The total amount of rare earth oxides in the second quarter was 2,617 tons, compared to 2,722 tons reported in the previous quarter. Production of neodymium and praseodymium, elements used to make permanent magnets, fell nearly 30% from the previous quarter to 1,292 tonnes.
“Unfortunately, December production was affected by a technical issue regarding impurities in the MREC (mixed rare earth carbonate) feedstock that required additional processing,” Lynas said in a statement.
The chemical elements required for further processing were not available on site until Christmas 2024, leading to lower production results in December.
The company, the world’s largest producer of rare earths outside of China, had an average selling price of A$49.2 per kilogram for its products in the quarter, compared to A$34.8 per kilogram last year.
The rare earth miner also said market conditions remained challenging despite a slight improvement in NdPr market prices at the beginning of the quarter.
The company said revenue rose to A$141.2 million ($87.69 million) in the three months to December 31. This compares with A$136.2 million a year ago and is below Visible Alpha’s consensus forecast of A$154 million.
Rare earth metals are essential to industries such as electric vehicles and defense due to their strong magnetic properties, and help improve energy efficiency.
($1 = 1.6103 Australian Dollar)
(Writing by Rajasik Mukherjee and Aaditya Govind Rao; Editing by Alan Barona)
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