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Key Highlights:
- Revenue increased by 8% to $254.3 million despite softer market demand for some rare earth elements.
- Major operational milestones achieved, including the opening of the Kalgoorlie Facility and Mt Weld Expansion commissioning.
- Strong safety performance, with over a million hours worked without lost time injuries in key projects.
Lynas Rare Earths (ASX:LYC) has released its financial results for the first half of 2024, showcasing resilience amid market fluctuations. The company reported revenue growth of 8%, reaching $254.3 million for the period ending December 31, 2024. This increase was primarily driven by a significant 23% rise in NdPr sales volume. However, total rare earth oxide (REO) sales volume saw a 14% decline due to lower demand for lanthanum (La) and cerium (Ce) products.
While revenue showed an upward trend, EBITDA dropped by 39% to $38.1 million, reflecting industry-wide challenges. Profit after tax attributable to members also declined by 85% to $5.9 million. No dividend was declared for the period.
Strategic Growth and Expansion Initiatives
Despite the challenging market conditions, Lynas (ASX:LYC) made notable strides in its expansion and operational capacity. A major milestone was achieved with the official opening of the Kalgoorlie Facility, marking a significant step for rare earths processing in Australia. This facility stands as the only downstream rare earths processing plant in the country, reinforcing the company’s commitment to bolstering local capabilities.
Further strengthening its operational framework, Lynas (ASX:LYC) successfully commissioned Stage 1 of the Mt Weld Expansion project. This marks a crucial step in scaling production capabilities. Additionally, the company continues to advance its Malaysia Expansion, focusing on the installation of a new dysprosium (Dy) and terbium (Tb) separation circuit. Alongside this, a new MREC (mixed rare earth carbonate) receival facility is progressing toward completion, reinforcing the company’s processing capabilities.
In the U.S., Lynas (LYC) identified a pathway to address wastewater management challenges at its Rare Earths Processing Facility, demonstrating a proactive approach to environmental compliance and sustainability.
Commitment to Safety and Sustainability
Lynas (LYC) has upheld a strong focus on safety across its projects. The Mt Weld Expansion team achieved a remarkable milestone of 1 million hours worked without a lost-time injury (LTI), while the Malaysia Expansion team recorded 1.2 million hours LTI-free. This reflects the company’s dedication to maintaining high safety standards as it expands operations.
With a strategic focus on long-term growth, technological advancements, and sustainable processing, Lynas (LYC) continues to position itself as a key player in the rare earths sector, navigating market challenges while strengthening its global presence.
