Lynas’ record quarter and progresses Kalgoorlie processing facility

Critical metals supplier Lynas Rare Earths has reported record sales receipts for the fourth quarter as well as progress in construction of a rare earths processing plant in Kalgoorlie, Western Australia (pictured).

The company, which mines ore at Mt Weld in WA and produces high value metals critical to high-tech industries in Malaysia, reported sales receipts up 34 percent to a record $351 million in the quarter.

Sales were buoyed by high rare earths prices with neodymium and praseodymium (NdPr) prices now 70 to 80 percent higher than at the same time last year.

Nonetheless quarterly sales revenue was $294.5 million, down 10.3 on the previous corresponding period.

And total rare earths oxides (REO) production was down 26.2 percent to 3,650 tonnes, due to water shortages in Malaysia.

Lynas is the only significant rare earths producer outside China, with most sales recorded outside China again this quarter.

The company has accelerated capital expenditure, with cash outflow on capital projects increasing to $73.6 million in the fourth quarter.

The company was awarded US$120 million by the US department of defence to build a heavy rare earths facility in Texas during the period.

It also progressed construction of the Kalgoorlie rare earths processing facility, with all five kiln sections now lifted into place and assembled, with welding now underway.

Raw water tanks and treatment tanks are complete or being fabricated, concrete foundations and frames on key buildings have progressed, and tank farm earthworks and waste gas plant foundation construction underway.

Lynas was forced to move some processing to Kalgoorlie following years of environmental protests in Malaysia over the production of radioactive by-products.

Picture: Lynas Rare Earths/kiln installation at Kalgoorlie

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