Lynas Rare Earths Ltd. on Monday reported an increase in second-quarter rare-earths production, both versus the quarter immediately prior and the same period a year ago. The miner said sales revenue also increased. Here are some remarks from its quarterly activities report.


On company operations:

"NdPr [neodymium and praseodymium] production of 1,508 [metric tons] and total REO [rare-earths oxide] production of 4,457 tons was achieved for the quarter, an increase on the prior quarter and the prior corresponding period. Production improved following the easing of the water supply disruption which was experienced in 1Q FY23. Mining Campaign 4-1 continued at Mt. Weld during the quarter. Pleasingly, Mt. Weld delivered a record quarter for volume of REO in concentrate from ore processing efficiencies.

"Additionally, the team continues to build the lanthanide concentrate stockpile for the Kalgoorlie Rare Earth Processing Facility start up. Capital works are underway at Lynas Malaysia to receive and process mixed rare earth carbonate feedstock to be produced at the new Kalgoorlie Rare Earths Processing Facility. Construction of the offsite Permanent Disposal Facility (PDF) in Malaysia continues."


On rare-earths demand:

"Demand from customers for Lynas' NdPr product family remains strong. Lynas continues to focus on increasing production as our customers forecast very strong demand in calendar year 2023. Lynas continues to receive enquiries from potential new customers for future cooperation, mainly from automotive OEMs [original equipment manufacturers] and new magnet manufacturing projects outside of China."


On market prices:

"The good product mix and good price obtained for SEG [mixed heavy rare earths] and new La-Ce [lanthanum-cerium] speciality products improved the average selling price despite market pricing remaining flat until early December. Market prices started to increase again from December in anticipation of the late January Lunar New Year holidays and an expected rebound of the consumption in China. Future pricing trends will depend on China's economic recovery."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

01-29-23 1727ET