(July 29): Australian rare earth producer Lynas Corp Ltd on Monday posted a 4.6% slip in quarterly sales revenue after it decided to to reserve output for strategic customers due to softer prices for its product during the quarter.
Lynas, the largest rare earths producer in the world outside of China, said in June it was stockpiling production of a major rare earth element, at a time when markets are concerned that Beijing may use the minerals as a weapon in its trade war with the United States.
Sales revenue for the June quarter was A$87.5 million ($60.5 million), lower than the A$91.7 million it earned for the same period last year, the company said in a statement.
Lynas sales were hit by a lower average selling price for Neodymium Praseodymium (NdPr), which is used to make permanent magnets for electric vehicles and wind turbines.
Quarterly production of NdPr reached 1,505 tonnes, compared with 1,447 tonnes a year ago.
The decision to limit sales led to a small inventory build, Lynas said. End of quarter inventory of NdPr products was 323 tonnes.
The miner is in dispute with Malaysia over the removal of low-level radioactive waste produced by its processing plant in the country, but said last week it was confident its operating license will be renewed before a Sept. 2 deadline.