Lynas grows amid tough market conditions

Lynas Rare Earths chair John Humphrey recently spoke about the company’s year of resilience and growth in the face of several market and operational challenges.

“In the 2023–24 financial year (FY24), (Lynas) delivered a positive financial performance despite challenging external market conditions,” Humphrey said during Lynas’ 2024 annual general meeting.

The company’s sales revenue reached $463.3 million, with a net profit after tax of $84.5 million and cost reductions of 17 per cent year-on-year. Operational efficiencies offset an eight per cent decline in NdPr (neodymium and praseodymium) production, which was caused by a six-week shutdown in Malaysia for capacity upgrades.

Significant operational milestones achieved throughout 2024 include the commissioning of the Kalgoorlie rare earths processing facility in Western Australia, with production commencing in June.

“This milestone was achieved as a result of excellent collaboration between our Australian and Malaysian teams,” Humphrey said.

The facility’s mixed rare earth carbonate (MREC) product has been shipped to Malaysia for further processing.

At the Mt Weld operation in WA, Lynas achieved a 92 per cent increase in mineral resources and a 63 per cent rise in ore reserves following an extensive drilling program.

The updated reserves include a 92 per cent boost in contained dysprosium, which is critical for high-performance magnets in electric vehicles and electronics.

“This summary of our key growth initiatives in the 2023–24 financial year demonstrates our commitment to growing our footprint and production capacity and making the most of the world-class Mt Weld resource,” Humphrey said.

Lynas also advanced its sustainability agenda, with contracts signed for a hybrid renewable power station at Mt Weld, reducing greenhouse gas emissions by approximately 60,000 tonnes of carbon dioxide annually. Early works for the station began in FY24, complemented by a rooftop solar array installed at Lynas Malaysia.

The company plans to produce dysprosium and terbium in Malaysia by 2025 and progress stage two of the Mt Weld expansion project.

While no dividend has been declared, the board is considering a policy aligned with Lynas’ growth trajectory.