The Lynas Rare Earths Ltd (ASX: LYC) share price is up 4.4% today.
Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed on Friday trading for $6.56. In early morning trade, the company’s shares are swapping hands for $6.85 apiece.
This comes as ASX 200 investors digest the miner’s quarterly activities report for the three months to 30 June (Q4 FY23).
What did the rare earths miner report?
The Lynas share price is leaping higher today despite a slide in quarterly revenue. The company reported quarterly sales revenue of $156 million. That’s down from $237 million in the prior quarter and down from $295 million in Q4 FY22.
The ASX 200 miner said factors “including softer demand for NdFeB [neodymium] magnets in Japan and China’s recent oversupply of La-Ce [lanthanum-cerium]” have ushered in lower rare earths prices.
Looking ahead, management noted future pricing will depend in part on the economic recovery in China and the Chinese production quota for the second half of 2023.
As for the balance sheet, Lynas ended the quarter with closing cash and short-term deposits of $1 billion, up around $35 million year on year.
And likely helping boost the Lynas share price today was a big lift in total rare earth oxide (REO) production. That came in at 4,475 tonnes, up from 3,650 tonnes in Q4 FY22. And also edging above the 4,348 tonnes produced in the last quarter.
Lynas neodymium and praseodymium (NdPr) production for the quarter was 1,864 tonnes. Management noted this represented a new three-month production record.
“Lynas recorded its highest ever quarterly production of NdPr at 1,864 tonnes and Mt Weld delivered record quarterly concentrate production,” the report said.
On the cost front, Lynas reported $201 million of cash payments for CAPEX, exploration, and development. That compares to $74 million in Q4 FY22.
As for what could impact the Lynas share price in the months ahead, management stated:
We continue to accumulate inventory as we plan for the start up of the Kalgoorlie facility. We have secured supply to our key customers and, in the coming months, given low market pricing, we will hold additional inventory directly.
Lynas share price snapshot
Despite today’s healthy lift, the Lynas share price remains down 11% in 2023.
