LYC +2.59%: a better than feared update helped support shares of the rare earth minerals company today. Their Mt Weld asset saw record production in the quarter of 4,475t of REO including 1,864t of NdPr, though cash receipts were down as the company held back sales given lower prices. They are currently in discussions with Malaysia for a further extension to their licence conditions which has allowed the company to maintain operations until next year. The company also expects first output from their new Kalgoorlie processing facility in September with final touches being put on the plant as we speak. This is largely in line with expectations. Lynas has faced a price headwind though, with the $38.90/kg selling price in the 4Q down more than 50% YoY. We expect prices to improve over the medium term and operationally Lynas looks to be on track to meet or beat expectations in FY24.
MM is long and bullish LYC
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