Lynas Rare Earths limited (LYC), formerly Lynas Corporation limited, is a proven producer and is growing through mine expansions and processing expansions, taking advantage of forecast growing prices. No other listed companies can boast this. While there are a range of competing projects in Australia, few are beyond the pilot plant stage.
LYC’s products are focused on the higher priced Neodymium and Praseodymium (NdPr oxide), which are used for permanent magnets. The NdPr rare earths are key energy transition metals, being used in electric vehicle motors and wind turbines.
Lynas Current Operations
Lynas mines rare earth oxides at its Mt Weld mine, Western Australia, which is the largest rare earths deposit outside of China. Theses oxides are then processed to produce a concentrate at its on-site mining and concentration plant. The concentrate is then shipped to its Lynas Advanced Materials Plant (LAMP), which is its advanced rare earths separation plant in Gebeng, Malaysia.
Summary:
Mt Weld Mine provides the raw rare earth resources
Concentrated at on site processor into a transportable concentrate
Transported to be further refined at its Malaysian plant into the final product.
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Lynas Future Operations
According to its chief executive officer/managing director, Amanda Lacaze, Lynas is planning to expand its operations, aiming to process rare earth minerals in the US, as well as increase the amount of processing of its raw feedstock nearer to its plants. It aims to achieve this through the development of the Kalgoorlie Processing Facility, and a Heavy and Light rare earth separator being constructed in Texas, USA.
Agreements and Funding
Lynas has several off-take agreements with an array of companies and national interests. For example one company, Japan Australia Rare Earths (JARE), has made a AU$200 million deal to secure 65% of its dysprosium and terbium production, in exchange for development funding and expansion. Another notable interest is the US government, where the Department of Defence (DoD) has provided US$258 million for the construction of the processing facility in Texas.
Investor Summary:
An already established producer, good resource deposit, and expansion prospects. To see our full buy sell hold recommendations as well as all of our past research on stocks like LYC, take out a 14 day free trial now!
