Australia's biggest rare earths producer has posted a strong uptick in revenue, despite a steep dip in production as commodity prices soar.
Lynas Rare Earths earned $201.9 million in gross sales revenue in the December quarter, despite a 30 per cent drop in production due to power outages at its processing plant in Kalgoorlie, Western Australia.
Lynas rare earths oxide output was 2382 tonnes, down from 3993 tonnes in the three months to September.
Revenue was slightly above the previous quarter, and beat the same quarter in 2024 by a whopping 43 per cent.
Rare earths minerals are key to a wide range of technology applications including wind turbine magnets, smartphones, and solar panels, and Lynas is their biggest producer outside of China, which accounts for up to 70 per cent of global output.
Their prices skyrocketed in 2025 after Beijing significantly tightened controls on exports, prompting a global scramble find other sources.
The average selling prices across all rare earths products was $85.60/kg, compared to $49.2/kg a year earlier.
The federal government has prioritised rare earths, as well as antimony and gallium, to be the first critical minerals included in a taxpayer-backed strategic reserve to counter China's stranglehold.
Upward price pressure in the December quarter has continued into January, Lynas said.
Investors - who had been warned about the production shortfall in November - reacted positively to the report, sending Lynas shares 4.6 per cent higher to $15.94 in early trade.
As for the power outages behind the output drop at the Kalgoorlie processing plant, Lynas said they had stabilised after works from the electricity provider.
"Notwithstanding the short-term improvement, we are continuing to develop plans for an off grid solution to ensure energy stability for the Kalgoorlie Facility," the miner wrote in the update.
The report came a week after influential chief executive Amanda Lacaze announced she would retire after 12 years at the helm.
The miner's search for her replacement continues.
Lynas' market value has increased under Ms Lacaze's stewardship from around $400 million in 2014 to close to $15 billion.