Lynas Rare Earths has secured minimum-price contracts covering more than half its production, as manufacturers pay extra for material sourced outside China, MINING.COM reported. The agreements provide some insulation from Chinese price volatility, although Lynas did not disclose the price floors in its quarterly release.
Average realised prices rose 88% to a record A$102.1 ($72) per kg in the three months to 30 September. Revenue increased 55% to A$310.1 million ($218 million), despite an 18% year-on-year decline in sales volumes. Lynas attributed the pricing improvement to firmer markets, customer premiums and sales packages combining light and heavy rare earths. Interim chief executive Pol Le Roux said original equipment manufacturers were deliberately securing a portion of their requirements outside China.
Quarterly rare earth oxide sales totalled 3,039 tonnes, against production of 4,254 tonnes, up 7% from a year earlier. Neodymium-praseodymium oxide output reached a quarterly high of 2,082 tonnes. Le Roux said the production-sales gap partly reflected material produced late in September that could not be invoiced before quarter-end. Analysts requested separate neodymium-praseodymium sales figures to clarify the contribution of product mix versus price gains; Lynas said it would seek to include them in future reporting.
Output is expected to decline in the December quarter because of roughly one month of maintenance at the Malaysian separation plant and a two-week electricity-network shutdown at Kalgoorlie in Western Australia. Le Roux said inventories, including stocks with the company's Japanese distributor, should sustain customer deliveries. Processing modifications are intended to ease bottlenecks and improve reliability, with stronger output expected in the quarters ending March and June 2027.
Lynas is also using dysprosium and terbium supplies to build longer-term relationships with magnet manufacturers purchasing neodymium and praseodymium. Bundling these materials broadens what customers can obtain from one supplier. MINING.COM noted that dependable commercial-scale separation remains an obstacle for the developing supply chain outside China.
The company finished September with A$1.21 billion in cash and short-term deposits. Earlier in the month, it agreed to acquire Meteoric Resources through a proposed A$968 million all-share transaction, adding Brazil's Caldeira project. Subject to shareholder, court and regulatory approvals, the initial development plan would send mixed rare earth carbonate from Caldeira to Malaysia for separation. An engineering review is assessing integration, cost reductions and the fastest route to production.