Lynas Rare Earths (LYC) investor relations material

Executive summary

• Strong quarterly results delivered despite power outages at Kalgoorlie, with positive operational and sales performance.

• Quarterly gross sales revenue reached A$201.9m, up 43% year-over-year, with sales receipts at A$185.0m.

• CEO Amanda Lacaze confirmed her retirement at the end of June, with a search underway for a new leader.

• Completion of the Lynas 2025 capital program and a robust balance sheet position the company well for future growth.

• NdPr production was 1,404t, down 30% sequentially due to power disruptions and maintenance.

Financial highlights

• Sales of NdPr exceeded production, resulting in inventory drawdown, with expectations to replenish inventory in due course.

• Average realized prices for rare earths, especially NdPr, were significantly above consensus forecasts, with average selling price across all rare earth products at A$85.60/kg, up from A$49.2/kg year-over-year.

• Closing cash and short-term deposits stood at A$1,030.9m at quarter end.

• Payments for capex, exploration, and development totaled A$45.2m for the quarter.

• Cash costs appeared higher due to lower production volumes and timing differences between cash outflows and production; a clearer cost picture will emerge at half-year results.

Outlook and guidance

• Target annual NdPr production capacity is 10,500 tons, with ongoing ramp-up efforts and a clear objective to reach this run rate as soon as possible.

• Production loss from the December quarter is expected to be recovered in subsequent quarters, assuming stable power supply at Kalgoorlie.

• No delay in the heavy rare earth circuit expansion, with first samarium production expected in Q4 of the current calendar year.

• Positive market sentiment and higher benchmark pricing continued into January 2026.

• First production of Samarium from the expanded HRE circuit in Malaysia is forecast for Q4 FY26.