Australia-listed miner Lynas Rare Earths Ltd. said first-quarter production and sales revenue was weaker than the preceding quarter because of disruptions from the Covid-19 pandemic. Here are some remarks from its operational report:
On rare-earths demand:
"Demand for rare earth materials continues to be very strong in the magnet market and our customers report that they expect this demand to further accelerate in 2022. Given that many market players expect the strong growth to continue, prices of rare earth materials used for magnets remain at a high level. The average China Domestic Price for NdPr [neodymium and praseodymium] was US$80.1/kg for the quarter."
On its 1Q sales:
"Sales during the quarter were limited by Covid-19 related effects on production and sales volume was affected by the resulting prioritization of NdPr production. Delays occurred as a result of limited shipping availability. Despite these challenging conditions (mostly related to the Covid-19 situation), our close relationships with our longstanding customers allowed us to minimize any supply chain disruption."
On its 1Q output:
"Despite the high level of vaccinated staff, increased Covid-19 case numbers in the Kuantan area during the quarter resulted in the cracking and leaching plant being partially or fully shutdown for 11 days due to the unavailability of personnel who were required to isolate. We were able to utilize this time for major maintenance programs. Product finishing of non-NdPr products was also shutdown for 16 days during the period as we prioritized NdPr production with available personnel. The pandemic continued to affect logistics, with delays in both inbound and outbound shipments affecting availability of key production inputs and finished product deliveries. Despite these challenges, the team managed to maintain NdPr production at 70% of Lynas NEXT capacity."
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