Continued strong performance
1H 23 1H 22
• Net Profit after tax: $150.1m $156.9m
• Revenue: $370.0m $314.8m
• EBIT: $158.0m $161.9m
• EBITDA: $189.0m $189.8m
• Cost of sales: $185.0m $140.3m
• Closing cash and cash equivalents: $934.2m $674.2m
Lynas Rare Earths Limited (“Lynas”) (ASX: LYC, OTC: LYSDY) today released its Financial
Report for the half year ending 31 December 2022.
Lynas Rare Earths CEO and Managing Director, Amanda Lacaze, commented: “I am pleased to
present strong results for first half of the 2023 financial year. Lynas achieved revenue of $370
million and a net profit (NPAT) of $150.1m. During the period, we invested $240 million in
capital projects. Our closing cash balance of $934.2m reflects the strong business performance
during the period.
“These results were achieved despite significant production challenges due to water supply
issues in the first quarter and the start of the second quarter as well as rapid increases in costs,
particularly for chemical inputs.
“Our team remains focused on increasing operational efficiencies to mitigate the continuing high
cost environment. At the same time, increasing production to meet strong demand from our key
customers and delivering on our exciting growth projects remain key priorities.”
Lynas Rare Earths Ltd Level 4, 1 Howard Street, Perth, WA 6004 Page 2
Ms Lacaze continued: “While rare earths market pricing decreased slightly from the highs
experienced at the end of the 2022 financial year, market conditions remained stable and an
optimised product mix enabled the team to achieve an improved average selling price.”
Malaysian Operating Licence renewed
Following the end of the half year, on 14 February 2023, Lynas received notification that Lynas
Malaysia’s operating licence will be renewed, effective from 3 March 2023 for a period of 3
years. The licence has been renewed with no change to the licence conditions that were applied
to the licence issued in March 2020 which prohibit the import and processing of lanthanide
concentrate after 1 July 2023, and which Lynas had applied to have removed.
Lynas Malaysia has now submitted two administrative appeals to the Malaysian
Government against these licence conditions. The first appeal is against the decision of the Atomic Energy Licencing Board (AELB) in failing to consider Lynas’ application for
the removal of these licence conditions while the second appeal is seeking administrative review of the conditions (as announced 16 February 2023 and 24 February 2023respectively).
Progress on major projects
Construction activity on Lynas’ Kalgoorlie Rare Earths Processing Facility accelerated during
the half year. Recruitment of the Facility’s operational leadership team is complete and
members of the team are resident in Kalgoorlie and focused on the completion of construction
and preparations for commissioning and ramp up. Feed on at the Kalgoorlie Rare Earth
Processing Facility is targeted for Q4 FY23.
The Kalgoorlie Facility is important for business continuity as well as growth. Its importance is
highlighted following the announcement of the renewal of the Lynas Malaysia operating licence
with conditions prohibiting the import and processing of lanthanide concentrate from 1 July
2023. If not removed, these conditions would require the closure of the Malaysian cracking and
leaching plant. Due to the inherent unpredictability of commissioning, Lynas continues to plan
for several potential ramp up scenarios. Inventory is being built at all stages in the process to
assist in meeting key customer requirements during any transition period.
Lynas Rare Earths Ltd Level 4, 1 Howard Street, Perth, WA 6004 Page 3
In Malaysia, construction is well underway on facilities to receive the mixed rare earth carbonate
(MREC) feedstock from the Kalgoorlie Facility and the equipment needed to integrate the new
facilities with downstream processes at the Lynas Malaysia plant.
The Mt Weld Expansion Project is progressing well, including Detailed Engineering Design,
procurement of long lead time items and award of packages. The bulk earthworks contractor
mobilised in January and has commenced site works.
Applications for the two major environmental approvals for the project have been submitted and
subject to relevant regulatory and stakeholder approvals, full operation is planned for 2024.
Lynas continues to progress its deliverables under the previously announced contracts
for the development of a U.S. Rare Earths separation facility. A proposed site in an
existing industrial area on the Gulf Coast of Texas has been identified and the activities
associated with site acquisition are nearing completion.
CEO Commentary
Lynas Rare Earths CEO and Managing Director, Amanda Lacaze, commented:
“This has been an eventful half year for Lynas with the announcement of our Mt Weld capacity
expansion project and accelerated construction activity on the Kalgoorlie Facility. At the same
time, in Malaysia we overcame significant water supply issues to deliver a strong production
result.
“We continue to see increased demand from our customers who value Lynas’ unique position
as a responsible and reliable supplier and we remain focused on serving our customers by
executing our ambitious growth plan.”
Authorised by: Sarah Leonard, Company Secretary
Media Relations: Investor Relations:
Jennifer Parker or Lauren Stutchbury
E: media@Lynasre.com
T: +61 (0) 498 808 604
Daniel Havas
E: investorrelation

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