Lynas Rare Earths Reports Record A$288.9 Million Revenue in June 2026 Quarter Amid Heavy Rare Earth Expansion

Record Sales Revenue and Pricing in June 2026 Quarter

Lynas delivered its highest quarterly sales revenue since Q4 FY22, reaching A$288.9 million in the June 2026 quarter, a 70% increase from A$170.2 million in the prior corresponding period. This growth was driven by a record average selling price of A$98.2 per kilogram for all rare earth oxides, up 63% from A$60.2 per kilogram a year earlier.

The pricing surge was supported by stronger neodymium-praseodymium market prices, a larger share of heavy rare earth sales, and premiums above market benchmarks. Sales receipts, representing cash collected, totaled A$297.1 million, compared with A$152.7 million in the same quarter last year. Lynas sold 2,941 tonnes of rare earth oxides amid robust demand from non-China supply chains amid geopolitical shifts and efforts to diversify rare earth sourcing.

Increased Production of Light and Heavy Rare Earths

Total rare earth oxide production reached 3,481 tonnes in June 2026, reflecting momentum after completing the A$1.5 billion expansion. Neodymium-praseodymium output was 1,857 tonnes, while heavy rare earths dysprosium and terbium rose to 19 tonnes, showcasing progress in heavy rare earth processing and market development.

The operations team overcame technical challenges, including issues with the new Mt Weld water recycling plant and ore concentrate quality variations, without disrupting production. Mining at Mt Weld remained strong, with expansion ramp-up ongoing. All expanded site equipment is operational except the new fine grinding mill (Isamill), expected online in Q1 FY27 to enhance recovery rates.

Samarium Oxide Product Launch and Customer Qualification

After producing the first samarium oxide in March 2026, Lynas has seen strong customer interest. Samarium oxide is used in high-performance magnets for electronics and aerospace, optical systems, catalysts, and medical devices. Customer qualification is underway, with first orders anticipated in Q1 FY27.

This product launch expands Lynas’s portfolio into premium heavy rare earth segments and highlights its ability to develop, produce, and qualify new products while maintaining existing supply commitments. It reinforces Lynas’s position as the leading rare earth oxide producer outside China, offering customers diverse product options beyond neodymium-praseodymium.

Malaysia Heavy Rare Earth Expansion Cost Increase and Gadolinium Production Timeline

The Lynas Malaysia heavy rare earth expansion in Kuantan is progressing but with capital costs rising from about A$180 million to approximately A$294 million, including contingencies. The increase stems from added equipment to meet customer specifications, higher costs for sourcing equipment outside China, and geopolitical supply chain challenges.

The facility is advancing toward production commissioning milestones. Following samarium oxide production in March 2026, first gadolinium output is expected early in FY28. Gadolinium is a specialist heavy rare earth used in magnets, medical imaging, and high-tech manufacturing, representing a key milestone and new revenue stream.

Strategic JS Link Partnership for Malaysian Magnet Factory

In July 2026, Lynas signed a long-term partnership with JS Link, Inc to develop a rare earth permanent magnet factory near Lynas Malaysia’s advanced materials plant in Kuantan. This extends Lynas’s downstream integration into magnet manufacturing beyond oxide production. Lynas will invest about A$50 million in JS Link’s ordinary equity to support factory construction.

The partnership includes an exclusive long-term supply agreement for Lynas to provide rare earth materials to JS Link’s existing factory in South Korea and the planned Malaysian facility at commercial prices, lasting until January 2038. The Malaysian factory aims to produce 3,000 tonnes annually of neodymium-iron-boron permanent sintered magnets. This aligns with Lynas’s Towards 2030 strategy to expand partnerships with metal and magnet makers and grow the outside-China magnet supply chain.

Unique Position as Sole Commercial Producer of Light and Heavy Rare Earths Outside China

Market conditions in the June quarter remained favorable, with strong demand from non-China magnet supply chains and OEMs for all rare earth oxides. Lynas is focused on accelerating heavy rare earth capacity ramp-up to meet growing demand from new global metal and magnet projects. Customers increasingly seek sustainable rare earth supplies outside China due to geopolitical and export restrictions limiting Chinese availability.

Lynas stands as the only commercial producer of both light and heavy rare earth oxides outside China, offering integrated access to the full rare earth spectrum for permanent magnet and metal manufacturing. Government policies worldwide support establishing outside-China supply chains for critical industries like defense, aerospace, renewable energy, and semiconductors. This environment, combined with customer preference for supply diversification, provides structural support for Lynas’s production and pricing. Its operations in Western Australia and Malaysia position it well to benefit from geopolitical and supply chain shifts in the rare earth industry.

Strong Cash Position and Controlled Capital Expenditure Amid Expansion

As of 30 June 2026, Lynas held A$1,209.1 million in cash and short-term deposits, up from A$1,070.0 million the previous quarter. This liquidity supports ongoing capital needs and strategic investments, including the Malaysia heavy rare earth expansion and the A$50 million JS Link equity investment. Capital expenditures during the quarter totaled A$27.8 million, down from A$88.1 million a year earlier, reflecting the nearing completion of the major A$1.5 billion expansion program.

Most equipment installation and commissioning for the Mt Weld expansion are complete, with remaining spending focused on tailings storage and Malaysia heavy rare earth facility advancement. Quarterly sales receipts of A$297.1 million exceeded gross sales revenue, indicating strong cash collection and effective working capital management. This financial flexibility supports Lynas’s ability to pursue strategic opportunities like the JS Link partnership.

Commitment to Occupational Safety and Workplace Standards

Lynas maintains a strong focus on occupational health and safety across its global operations. The 12-month rolling lost time injury rate as of 30 June 2026 was 0.9 per million hours worked, and the total recordable injury and illness rate was 4.1 per million hours. These metrics demonstrate Lynas’s commitment to safe working environments aligned with national and international best practices.

The company complies with all local regulations and adopts international standards for health and safety management. Detailed safety program documentation and reporting are available on Lynas’s website, providing transparency on workplace standards and safety culture. These indicators are important to institutional investors and stakeholders assessing operational risk and governance in mining and mineral processing.

Outlook for Q1 FY27 and Upcoming Operational Milestones

The first quarter of FY27 is a pivotal period for Lynas, with key objectives including fulfilling initial samarium oxide customer orders after qualification and commissioning the Isamill fine grinding mill, expected to enhance recovery and processing efficiency at Mt Weld.

Strategic priorities include continuing ramp-up of the expanded Mt Weld plant, resolving bottlenecks at the Kalgoorlie Processing Facility, advancing Malaysia heavy rare earth expansion toward gadolinium production in early FY28, and progressing the JS Link magnet factory construction. These initiatives position Lynas to expand capacity, diversify its product range, and deepen downstream integration into the rare earth magnet and metal supply chain. Investors should monitor production volumes, pricing trends, new product certifications, and capital project progress.