Australia's Lynas posts 33% in rare earths output in Q3
Australia’s rare-earths producer Lynas has reported a 32.5% rise in Q3 production on Tuesday
Lynas reported a 32.5% rise in production of rare earths oxides during its third quarter, amid takeover bids from retails-chemicals conglomerate Wesfarmers.
Output of rare earths oxides (REO) in the quarter ending March 31 was 5,444 tonnes, compared with 4,110 tonnes produced last year.
Production of NdPr, or neodymium-praseodymium, rose 19.4 percent to 1,591 tonnes, a new quarterly record, said Lynas, the world's only major producer of rare earths outside China.
Lynas said in a statement that the record numbers came in despite a slower start in January, with more than 600 tonnes produced in the month of March.
Third-quarter sales revenue rose nearly 18% to A$101.3 million.
Lynas said that it would reserve all NdPr product for its business partners, leading to a build-up inventory in the fourth quarter. The move could combat continued weakness in market prices according to the Lynas.
Lynas share price
It comes after the rare-earths miner’s share price fell 2.4% to A$2.06 after it rejected Wesfarmers A$1.5 billion takeover bid last week.
Lynas replied to the takeover bid with a rejection, saying that it would not engage with Wesfarmers on its "highly conditional" bid. Lynas commented that Wesfarmers' bid does not value its 'unique' position as the world's only major producer of rare earths outside China
Lynas operates an $800 million processing plant in Malaysia, and has since been in disputes with the Southeast Asian nation on waste disposal after it was told to remove years of accumulated waste at the facility in order to have its licence renewed.
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