Lynas Rare Earths (LYC) H2 2024 earnings summary

Executive summary

• EBITDA for FY24 was AUD 132.1 million, down from AUD 377.7 million in FY23, reflecting resilience amid the lowest sustained rare earth prices since 2020 and subdued demand.

• Net profit after tax was $84.5m, down from $310.7m in FY23, with sales revenue at $463.3m versus $739.3m in FY23.

• Major operational milestones included the first shipment from Kalgoorlie, completion of stage one of Mount Weld expansion, and significant works at the Malaysian facility.

• Secured a variation to the Malaysian operating license, enabling continued import and processing of lanthanide concentrate and supporting further investment.

• Upgraded Mount Weld mineral resources and ore reserves, with a 92% increase in mineral resources and 63% increase in ore reserves, extending mine life and increasing contained heavy rare earths.

Financial highlights

• EBITDA: AUD 132.1 million (FY23: AUD 377.7 million); net profit after tax: $84.5m (FY23: $310.7m); sales revenue: $463.3m (FY23: $739.3m).

• Operating costs reduced by 17%, with OpEx (excluding G&A) at AUD 280 million, down by about AUD 60 million year-over-year.

• Cash and short-term deposits: $523.8m as of June 30, 2024 (June 2023: $1.01B).

• Average selling price per kg REO: $38.1 (FY23: $46.2).

• Capital invested in property, plant, equipment & mine development: $579.3m (June 2023: $595.5m).

Outlook and guidance

• Targeting demonstration of 10,500 tpa separated NdPr production capacity by year-end, with gradual ramp-up to align with market recovery.

• Production in FY25 expected to be weighted toward the second half, with flexibility to adjust output based on market demand and Chinese quota developments.

• CapEx for FY25 guided at AUD 400–500 million, with the majority allocated to Mount Weld expansion; spending will be actively managed in response to market conditions.

• Mt Weld expansion project Stage 2 construction underway, targeting completion by end of FY25.

• U.S. Heavy Rare Earths plant construction delayed due to permitting issues; earthworks postponed until resolved.