PERTH (miningweekly.com) – Rare earths miner Lynas has reported record results for its full 2022 financial year, with net profits after tax soaring to A$540.8-million in the 12 months under review, up from the A$157.1-million in the previous corresponding period.

Revenue for the full year was up from A$489-million to A$920-million, while earnings before interest, taxes, depreciation and amortisation were up from A$169.5-million to A$601.2-million.

Lynas produced 15 970 t of total rare earth product during the period, up slightly from the 15 761 t produced in the 2021 financial year, while neodymium and praseodymium (NdPr) production increased from 5 461 t to 5 880 t in the same period, with the average selling price for rare earth oxides jumping from A$29.80/kg to A$60.30/kg.

“Closing cash at A$965.6-million allows us to confidently progress our various growth initiatives. This is important as Lynas is uniquely positioned with a resilient supply chain for rare earth materials from our facilities in Western Australia and Malaysia to our partners in Vietnam, Japan and Europe. This is valued by our key customer base,” said CEO and MD Amanda Lacaze on Friday.

“Favourable market conditions and strong demand for Lynas’ rare earth materials saw sales revenue increase by 88.1% and net profit after tax increase by 244% from the 2021 result. Rare earths prices were sustained at high levels during the second half of the year, and the NdPr market price remained 70% to 80% higher than in the same period last year,” Lacaze continued.

She noted that ongoing measures implemented across the business mitigated some of the challenges presented by the external environment, including shipping delays, input cost increases, water supply issues and the ongoing effects of the Covid-19 pandemic. The Lynas team prioritised production to meet the needs of customers and remained focused on growing the business to support customer growth.

Lacaze told shareholders that Lynas’ expansion initiatives would support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the US.

“The objectives of the Lynas growth plan are to grow with the market, diversify the company’s industrial footprint, and increase the product range for customers. The company is pleased to have made progress on these initiatives during the year and is now working to accelerate growth capacity at the Mt Weld site.

“Construction of the Kalgoorlie rare earths processing facility progressed during the year. All necessary approvals for the Kalgoorlie project were received, 100% of equipment was ordered, and construction works at the end of the 2022 financial year were over 40% complete,” Lacaze said.

The company was also awarded a $120-million contract by the US Department of Defense for construction of a commercial heavy rare earths separation facility in the US during the year.

The heavy rare earths facility will be co-located with the light rare earth separation facility which is sponsored and half funded by the US government. Detailed planning is underway for the facility which is expected to be located within an existing industrial area on the Gulf Coast of the state of Texas and targeted to be operational in financial year 2025.

Lacaze noted that demand for rare earth materials is accelerating and Lynas is investing in the further development of the Mt Weld resource and beneficiation circuit.

In August, Lynas announced an approximately A$500-million project to expand capacity at the Mt Weld mine and concentration plant beyond the previously announced 10 500 t/y of NdPr finished product to produce the feedstock concentrate required for 12 000 t/y of NdPr finished product.

“Together with the construction of the Kalgoorlie processing facility, this project brings Lynas’ investment in the development of critical minerals capacity in the Goldfields region of Western Australia to approximately A$1-billion,” Lacaze said.