Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Lynas share price surges as Q4 revenue hits $185.9 million

The rare earths company has seen demand for its products rise strongly, with revenue gaining firmly in response.

Lynas share price surges as Q4 revenue hits $185.9 million Source: Bloomberg

Lynas share price surges

Rare earths company Lynas (ASX: LYC) unveiled a bumper set of quarterly results on Monday and the stock rose strongly in response. By 10:40AM the Lynas share price was up 7.62% to $6.92 per share, marking a six-month high for the company.

The stock continued to climb as the session progressed, trading up to $7.00 per share by noon. Below we look at the results that triggered this run.

Fourth quarter results unpacked

Overall, Lynas posted better quarterly revenue, sales receipts, and had a stronger closing cash balance than in the prior corresponding period. The macro environment has also improved, and demand for the company’s products was described as ‘sustained’.

On the top-line, Lynas reported Q4 revenues of $185.9 million, a strong increase from the $110 million in revenue generated in the prior corresponding period (PCP). This came off the back of $192 million in sales receipts, also significantly higher on a PCP basis.

Management said that this performance was driven by 'sustained demand for Lynas NdPr products and strong market pricing, as end users and governments around the world continue to recognise the need for a diversified supply of responsible rare earth materials.'

NdPr, for reference, stands for NEODYMIUM and praseodymium and is an essential component for many everyday electronic devices, from smart phones to laptops.

This all translated into a strong uptick in Lynas’ average selling price – which is now almost double what it was a year ago. Indeed, Lynas has recorded solid incremental growth in its average sales prices across the last five quarters, from $20.2 per kilogram in the fourth quarter of fiscal 2020 to $39.1 per kilogram in the latest quarter.

Do you have a view on Lynas? Whatever you think, you can use CFDs to trade stocks and other assets, through IG’s world-class trading platform.

For example, to buy (long) or sell (short) a variety of local and international stocks using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter <Company name> in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

For investors not looking to trade stocks, you can invest in shares directly through our share trading service.

Cash levels rise

From a cash perspective, Lynas continues to build a war chest, reporting a cash balance of $680.8 million at the close of the June quarter.

Elsewhere, while revenue was up and demand sustained, from an operational perspective, Lynas produced less this quarter than it did during the same time last year, as the company grapples with the operational hurdles caused by the covid pandemic.

To that end, the company reported total REO production of 3,778 tonnes during the quarter, made up of 1,393 tonnes of NdPr production. While overall production was down on a PCP basis, NdPr production actually came in higher.

This upped production seems to have come at a good time, with the average NdPr prices in China hitting US$69.9 per kilogram in the June quarter.

According to management: 'Demand for catalyst from the automotive and the fluid catalytic cracking (FCC) sectors is back to pre-COVID levels, which we see continuing in the near future.'

'However, we remain alert to the effect the pandemic can have on end product demand, logistics and industrial supplies.'


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.