Lynas Rare Earths Ltd (ASX: LYC) shares are on the move on Thursday.
In morning trade, the rare earths producer's shares are up 2% to $15.61.
This follows the release of the company's first quarter update before the market open.
Lynas shares rise on quarterly update
For the three months ended 30 September, Lynas reported quarterly gross sales revenue of $200.2 million. This represents a 66% increase year on year and a 17.6% increase quarter on quarter.
This reflects total rare earths oxide (REO) sales volumes of 3,691 tonnes, which was up 30% from 2,828 tonnes in the prior quarter. This includes record neodymium-praseodymium (NdPr) sales.
Supporting its sales growth was a sizeable increase in ready for sale REO production to 3,993 tonnes, including 2,003 tonnes NdPr.
Combined with its $750 million institutional placement, this led to Lynas Rare Earths ending the period with a cash balance of $1,060 million. This is up from $166.4 million at the end of June.
'Significant' quarter
Commenting on the quarter, management said:
The September 2025 quarter was significant for Lynas with the announcement of the Towards 2030 growth strategy, alongside our FY25 financial results on 28 August 2025, and the completion of an equity raising. The equity raising, which comprised a $750 million institutional placement and a Share Purchase Plan for retail shareholders, further strengthens our Balance Sheet, enabling Lynas to pursue a strong growth agenda. The institutional placement attracted significant demand and support from both existing shareholders and new investors. The successful completion was announced the following day.
And speaking about potential Chinese export controls, management revealed that it believes Lynas is well-placed to benefit. It said:
The implementation of the new regulations remains uncertain and as noted above, this reinforces the importance of protecting current functioning outside China supply chains and the importance of Lynas as the only outside China commercial producer of separated Light and Heavy Rare Earth oxides. Lynas has subsequently experienced a significant increase in demand from direct end customers and new metal and magnet maker projects.
And while Lynas acknowledges that certain inputs previously sourced from Chinese suppliers are likely to be restricted, it has identified alternate supply sources for all key inputs.
No guidance has been provided for the remainder of FY 2026. However, it advised that "production rates and sales will be carefully managed until the full effect of the proposed regulations is understood and various governmental agreements have been finalised."
