Lynas Rare Earths : FY21 Investor Presentation

LYNAS RARE EARTHS

FY21 Results

Investor Presentation

27 August 2021

Disclaimer

This presentation has been prepared by Lynas Rare Earths Limited (ABN 27 009 066 648) (Lynas or the Company) this presentation contains summary information about Lynas and its subsidiaries (Lynas Group) and their activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete or to comprise all the information that a shareholder or potential investor in Lynas may require in order to determine whether to deal in Lynas shares. It should be read in conjunction with Lynas group's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au. This document is not a prospectus or a product disclosure statement under the Corporations act (Cth) 2001 (Corporations Act) and has not been lodged with ASIC.

Not investment or financial product advice

This presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire Lynas shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek financial, legal and taxation advice appropriate to their jurisdiction. Lynas is not licensed to provide financial product advice in respect of Lynas shares. Cooling off rights do not apply to the acquisition of Lynas shares.

Financial data

All dollar values are in Australian dollars (A$) unless stated otherwise and financial data is presented within the full year ending 30 June 2021 unless stated otherwise. Any pro forma historical financial information included in this presentation does not purport to be in compliance with article 11 of regulation S-X of the rules and regulations of the US securities and exchange commission.

Future performance

Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. This presentation contains certain "forward-looking statements". The words "expect", "should", "could", "may", "will, "predict", "plan", "scenario", "forecasts", "anticipates" "estimates" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-

looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements.

Investment risk and other risks

An investment in Lynas shares is subject to investment and other known and unknown risks, some of which are beyond the control of Lynas group, including risk factors associated with the industry in which Lynas group operates, such as: nature of mineral exploration and production; mineral and ore reserves; operations risks; project development risks; market price and demand risk; credit and market risks; regulatory, political and environmental risks; tax and other risks generally relating to equity investment.

Not an offer

This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the united states. Any securities described in this presentation have not been, and will not be, registered under the U.S. Securities act of 1933 (the "securities act").

Disclaimer

Lynas and its affiliates, officers, employees, agents and advisers have not authorised, permitted or caused the issue, dispatch or provision of this presentation to any third party. Lynas, its related bodies corporate and their respective affiliates, officers, employees, agents and advisers to the maximum extent permitted by law, expressly disclaim all liabilities in respect of any expenses, losses, damages or costs incurred by you as a result of the information in this presentation being inaccurate or due to information being omitted from this presentation, whether by way of negligence or otherwise, and make no representation or warranty, express or implied, as to the fairness, currency, accuracy, reliability or completeness of information. The information in this presentation remains subject to change without notice.

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Record profit and strong financial performance

	FY21	FY20	Movement
	$m	$m	$m	%
Net Sales	489	305	184	60%
Revenue
EBITDA	235	60	175	292%
Net Profit after	157	(19)	176	n/a
tax

	30 June	30 June	Movement
	2021	2020
Cash and short- term	$m	$m	$m	%
681	102	579	568%
deposits
Net Assets	1,083	518	565	109%
Market Capitalisation	5,145	1,262	3,883	308%

• Record profit achieved
• Production sustained safely at 75% of Lynas NEXT capacity despite challenges of COVID- 19
• Effective cost controls maintained
• Strong Balance Sheet including approx. $425m equity raising in September 2020
• Cash and short term deposits of $681m
• Debt balance of $171m (JARE loan) following conversion of final tranche of convertible bonds in August 2020
• Continued progress on Lynas 2025 growth initiatives

Note: Percentage may differ from the sum of the separate figures due to rounding	3

FY21 Results

Production Volume (REOt)

25,000

20,000

15,000

10,000

5,000

0	2,257	3,896	5,223	5,444	5,898	4,656	5,461

FY15	FY16	FY17	FY18	FY19	FY20	FY21
NdPr (RTS)	Others (RTS)	Total RTS Volume

620 Gross Revenue (A$'m)

520

420

320

220

120

20

FY15

FY16

FY17

FY18

FY19

FY20

FY21

200							NPAT (A$m)											250		EBITDA (A$m)							240		Cash Flow (A$'m)
																																													(excl. AELB, Interest received)
150																														200
																																												190	Net investing CF
100																														150																140	Net operating CF
50																																													Operating & investing CF
																													100																90
0
																															50
-50																																															40
-100																														0
-150																														-50																-10
		FY15				FY16				FY17	FY18				FY19					FY20				FY21	FY15	FY16	FY17	FY18	FY19	FY20	FY21	-60
																																																FY15	FY16	FY17	FY18	FY19	FY20	FY21

Meeting customer demand

READY FOR SALE	. READY FOR SALE
PRODUCTION	PRODUCTION
VOLUME - REO	VOLUME - NdPr

15,761	5,461
TONNES		TONNES
(FY20: 14,562 TONNES)		(FY20: 4,656 TONNES)
SALES VOLUME		. COST OF SALES
TOTAL REO
16,405		A$(302.2)
TONNES		MILLION
(FY20: 14,172 TONNES)		(FY20: (257.3M))

AVERAGE.

SELLING PRICE

A$29.8

PER KG

(FY20: A$21.5/KG)

. NdPr OXIDE CHINA DOMESTIC PRICE (EX-VAT) JUNE 2021

US$64.7

PER KG

(JUNE 2020: US$36.0/KG)

Leveraging positive market conditions

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