Lynas Rare Earths (ASX:LYC)
posted record sales for the December quarter despite the pandemic-led challenges.
Demand for metals used in electric vehicles grew as the pursuit continues to reduce carbon emissions. The miner posted a 67 per cent boost to $202.7 million in sales, up from $121.6 million in the prior quarter, reflecting continued buoyancy of the market and strong customer demand for a sustainable supply source of rare earths.
The company also grew its cash balance to $674.2 million, up slightly from the prior period. Total production was also higher, hitting 4209 tonnes, compared to 3166 tonnes in the prior quarter despite the ongoing logistics challenges and delays.
The company said that demand for Lynas products remained very strong during the quarter and favourable market conditions continued, with customers indicating their expectation of accelerated demand in the next quarter.
Solutions were implemented to mitigate logistic challenges and global shipping delays, including chartering a ship to transport Lynas’ rare earth concentrate from Fremantle Port to Kuantan Port.
Whilst this comes at an additional cost, it is outweighed by the benefit of ensuring continuity of supply to its customers, the company said.
Shares in Lynas Rare Earths (ASX:LYC)
are trading 0.7 per cent higher at $11.17.