Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

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Female miner smiling at a mine site.

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ASX 200 mining company Lynas Rare Earths Ltd (ASX: LYC) unveiled its quarterly activities report this morning.

And this update for the fourth quarter of FY25 appears to have struck a positive chord with the market.

At the time of writing, Lynas shares are trading at $10.42 apiece, up 2.71%.

In comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is currently down 0.32%.

Not only that, but today's positive sentiment builds on what has already been a stellar performance this year.

The company's share price has rocketed more than 60% since the beginning of January.

And long-term investors in this Aussie rare earths miner have even more reason to celebrate, with the group's share price soaring by nearly 400% over the past five years.

There now appears to be more good news for shareholders in today's quarterly update.

Major rare earths producer

Lynas operates the Mt Weld mine in Western Australia, which is considered one of the richest rare earths deposits worldwide.

The company also owns the world's largest rare earths processing plant outside of China.

Located in Malaysia, this facility produces high purity, separated rare earth materials for export to key international markets.

In a nutshell, Lynas claims to be the only major producer of separated rare earth materials excluding China.

Rare what?

Rare earths are a group of 17 elements critical to a wide range of modern-day technologies, from clean energy and electric vehicles (EVs), to smartphones, robotics, and many others.

Among them, neodymium (Nd) and praseodymium (Pr) stand out.

These two elements are key ingredients in permanent magnets used in (EVs), wind turbines, e-bikes, and everyday consumer electronics.

Together, they're commonly referred to as NdPr.

And Lynas produced a record quantity of NdPr in the fourth quarter of FY25.

What happened?

Lynas reported major production milestone during the quarter, with NdPr output exceeding 2,000 tonnes for the first time in its history.

All up, the company produced 2,080 tonnes of NdPr, which marks a 38% jump compared to the previous quarter.

In addition, overall rare earth oxide (REO) production also surged by 68% from three-months prior, reaching 3,212 tonnes in the fourth quarter.

Management also highlighted an improvement in pricing, with the average selling price for its product basket rising to $60.20 per kilogram – the highest level since the July 2022 quarter.

In turn, sales revenue of $170.2 million grew by 38% from the previous quarter.

What else?

Lynas also notched up several other milestones during the period.

Most notably, the company completed its first commercial production of separated Heavy Rare Earths (HRE) at its new processing line in Malaysia.

It claims this breakthrough represents the first commercial HRE production outside of China in decades.

Management also noted that most of the major construction works for its 'Lynas 2025' capital growth project have been completed.

As such, Lynas is switching its focus to stabilising production at higher volumes, while carefully aligning output with market demand.

The company's quarterly progress now sets the stage for its full results for FY25, which are due for release in the coming weeks.

Motley Fool contributor Bart Bogacz has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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