The Lynas Rare Earths Ltd (ASX: LYC) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed yesterday trading for $7.73. In morning trade on Wednesday, shares are changing hands for $7.85 apiece, up 1.6%.
For some context, the ASX 200 is down 0.2% at this same time.
This outperformance comes following the release of Lynas' quarterly update for the three months to 30 September (Q1 FY 2025).
Here are the highlights.
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Lynas share price lifts on results
Investors are bidding up the Lynas share price after the ASX 200 rare earths producer reported quarterly sales revenue of $120.5 million, down 6% year on year.
Sales receipts of $127.5 million were down 1% year on year but up 9% from the prior quarter.
The three-month period saw Lynas achieve total rare earths oxide (REO) production of 2,722 tonnes. That's down from 3,609 tonnes from Q1 FY 2024, while up from 2,188 tonnes last quarter.
Neodymium and praseodymium (NdPr) production of 1,677 tonnes was up 10% year on year.
On the cost front, the miner's quarterly CAPEX, exploration, and development cash payments declined 24% year on year to $125 million.
As at 30 September, Lynas held cash and short-term deposits of $413 million, down 54% from Q1 FY 2024.
The Lynas share price hasn't gotten any help from ongoing weakness in rare earths prices. Management noted that rare earths prices continued at low levels during the quarter, though there was a small improvement in the NdPr price in September.
Over the three-month period, the average NdPr market price was US$48 per kilogram.
Lynas said that, as planned, it managed production in line with market demand. Some 100 tonnes of NdPr remained at port at the end of the quarter. In a boost for next quarter's results, this inventory will be included in Q2 FY 2025 sales.
Lynas continues to balance its growth ambitions with cost management goals.
According to the ASX 200 rare earths miner:
Progress on Lynas growth projects to deliver our target of 10,500 tonnes of NdPr capacity in FY 2025 continued on track…
Work to optimise production costs and improve recoveries from mine to finished products continued in the quarter and remains a focus across all sites.
Lynas' growth ambitions are focused on its Kalgoorlie Project and the Mt Weld expansion project. While in the United States, the management noted that project activities continued for its Rare Earths Processing Facility.
With today's intraday move factored in, the Lynas share price is up 10% in 12 months.
