Lynas Rare Earths Ltd (ASX: LYC) shares are gaining today and reached as high as $5.27 in morning trade. At the time of writing, however, the Lynas share price has pulled back and is currently trading at $5.08, up 1.6%.
This comes following the release of the company’s quarterly report for the period ending 31 December.
What did Lynas announce?
The Lynas share price is pushing higher in morning trade after the rare earths producer reported sales revenues of $119.4 million for the December quarter. That’s up from $87.3 million in the previous quarter, and marks the company’s highest every quarterly sales result.
NdPr production of 1,367 tonnes was in line with the company’s guidance, and slightly higher than the 1,342 tonnes produced in the preceding quarter.
Lynas reported that, due to COVID-19 restrictions, cash conversion in the quarter was low. Shipping schedules were reduced and sailings delayed, skewing sales to late in the quarter. The company had a closing cash balance of $512.6 million.
Lynas said that progress at its Kalgoorlie project is continuing, which includes placing orders for process equipment.
Addressing the outlook for the rare earth market, Lynas CEO Amanda Lacaze wrote:
While we cannot yet make a full assessment of the pandemic’s impact on global demand, the Rare Earth market appears to have been less affected by the crisis compared to some markets. Demand for electric vehicles has accelerated in Europe and Asia, which has more than compensated for the overall decrease in the automotive market.
Developing strategically reliable Rare Earth supply chains remains important to governments and end users. As the world’s second larger producer of separated Rare Earths, and the only significant producer outside of China, Lynas is in an ideal position to support supply chain diversity.
Lynas Rare Earths share price and company snapshot
Lynas is a leading rare earths producer with a portfolio of aligned assets to explore, develop, mine and process rare earth minerals. Assets include its Mt Weld mine and Mt Weld Concentration Plant in Western Australia, and a manufacturing facility in Malaysia. The company’s Mt Weld resource is among the highest-grade rare earths mines in the world. Lynas is part of the S&P/ASX 200 Index (ASX: XJO).
With today’s gains taken aboard, the Lynas share price is up nearly 28% so far in 2021. Over the past full year, Lynas shares have gained 133%.