Australia’s Lynas Rare Earths (ASX: LYC) reported a more than two-fold rise in third-quarter revenue on Tuesday, driven by stronger prices and robust demand as customers look to reduce reliance on Chinese supply.
The company posted gross sales revenue of A$265 million for the quarter ended 31 March, up 115% from $123 million in the prior corresponding period (pcp).
The result marks Lynas’ strongest quarterly revenue since the final quarter of fiscal 2022, driven by improved pricing and a more favourable product mix.
As the largest producer of rare earths outside China, Lynas said market conditions remain supportive, highlighting growing customer demand for diversified supply chains amid ongoing geopolitical tensions.
The company noted a “renewed and urgent focus by customers on securing sustainable, outside China supply chains due to ongoing disruptions to previous supply chains”.
The rare earths sector has gained renewed attention over the past year, particularly following strategic moves by the United States to secure the supply of critical materials used in advanced technologies.
Neodymium-praseodymium (NdPr), a key component in high-performance magnets, remains central to this demand, with applications spanning defence systems, electric vehicles and renewable energy infrastructure.
Lynas reported that its average NdPr selling price increased 25% from the prior quarter, supported by changes in market index pricing and a growing share of sales conducted at prices independent of benchmark indices.
Operationally, the miner delivered total rare earth oxide (REO) production of 3,233 metric tonnes for the quarter, representing a more than 69% increase compared to the same period last year.
The company also noted in the release: "Lynas closely monitors our supply chains, including fuel supply and other raw materials affected by geopolitics and global fuel markets. To date, we have not experienced any material disruptions due to the current global fuel supply situation.
"However, price increases are expected for a number of materials. It is difficult to forecast the magnitude and duration of these price increases.
“Our Supply Chain team is monitoring this closely and accelerating projects which should deliver greater efficiency.”
Shares in Lynas, which have more than doubled over the past year amid strong investor interest in the sector, were down 3.1% by 2:10 pm AEST (4:10 am GMT) on Tuesday. The company maintains a market capitalisation of $20.83 billion.
