The Lynas Corporation Ltd (ASX: LYC) share price has lifted 1.28% in early trade after the group's latest quarterly update and will be worth watching today.
What did Lynas report in its December quarter?
The rare earths group reported neodymium and praseodymium (NdPr) production of 1,270 tonnes for the period ending 31 December 2019. That's up 2.25% on the proceeding quarter in Q1 FY 2020.
Total rare earth oxide (REO) production slumped 11.41% quarter on quarter (QoQ) to 3,592 tonnes during the period.
These numbers were in line with guidance and Lynas is now increasing production. This ramp-up comes after a reset of the Malaysian processing limit on 1 January 2020.
The group expects to satisfy the licence conditions set out in its renewed Malaysian operating licence on 16 August 2019. Regulatory issues have moved the Lynas share price in recent times as the group has tried to work with Malaysian authorities.
In terms of sales, Lynas achieved 3,507 tonnes in REO sales volume in the December quarter. While REO sales slumped 16.22% QoQ, this was largely due to weak NdPr pricing during the period.
What is the outlook for Lynas in 2020?
Lynas is continuing to push on with its "Lynas 2025 Growth Plan" this year. The rare earths producer announced a new processing plant in Kalgoorlie, Western Australia during the period.
The Lynas share price surged higher after rumours of the group tendering for a United States rare earths plant for weapons development. Those rumours were confirmed with Lynas seemingly in a good position as the largest rare earths producer outside of China.
The group has now officially submitted its tender and shareholders will be waiting and watching those developments closely.
Foolish takeaway
At the time of writing Lynas shares are up 1.28% to $2.37, and the Lynas share price will be one to watch in early trade after today's quarterly update.
As investors take in these latest numbers, the February results season and any US Army tender updates also look likely to move the group's shares throughout 2020.
