Lynas Rare Earths Shares Surge as Quarterly Revenue Jumps on Strong Prices

Shares of Lynas Rare Earths Ltd (ASX: LYC) climbed sharply on Wednesday after the Australian rare earths producer reported a significant increase in quarterly revenue, driven by higher rare earth prices despite a decline in production volumes. The positive earnings update boosted investor confidence, sending the company’s Sydney-listed shares up as much as 8% to A$16.41 in early trading.

Lynas, the world’s largest producer of rare earths outside China, announced that gross sales revenue for the December quarter reached A$201.9 million (approximately $136 million). This marked a 43% increase compared to the same period last year and was also slightly higher than revenue recorded in the previous quarter. The strong performance highlights the company’s ability to benefit from improving market conditions, even amid operational challenges.

A key driver of the revenue growth was a sharp rise in average selling prices across Lynas’ rare earth products. The company reported an average selling price of A$85.60 per kilogram, up significantly from A$49.20 per kilogram a year earlier. This increase reflects stronger benchmark pricing in the global rare earths market, as well as Lynas’ growing share of sales that are priced independently of traditional market indices, providing greater pricing flexibility and resilience.

Production, however, declined during the quarter. Output of neodymium and praseodymium (NdPr), critical materials used in permanent magnets for electric vehicles, wind turbines, and electronics, fell about 30% quarter-on-quarter to 1,404 tonnes. The decrease was attributed to power disruptions at the Kalgoorlie facility in Western Australia and planned maintenance at the company’s Malaysian operations. Total rare earth oxide production also dropped to 2,382 tonnes from 3,993 tonnes in the prior quarter.

Despite the lower output, Lynas Chief Executive Officer Amanda Lacaze said market sentiment remained positive into January. She noted that demand continues to be supported by improved pricing, new customer contracts, and ongoing growth in rare earth supply chains outside China. As global demand for critical minerals rises, Lynas appears well-positioned to benefit from favorable pricing and strategic importance in the rare earths sector.