Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — FY2021 Earnings Presentation
17 slides from Lynas Rare Earths's earnings presentation, Aug 27, 2021
Slide 1: FY21 Results
LYNAS RARE EARTHS FY21 Results Investor Presentation 27 August 2021
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Lynas Rare Earths Limited (ABN 27 009 066 648) (Lynas looking statements including projections, guidance on future earnings and estimates are provided or the Company) this presentation contains summary information about Lynas and its subsidiaries as
Slide 3: Record profit and strong financial performance
Record profit and strong financial performance FY21 FY20 Movement $m $m $m % • Record profit achieved Net Sales • Production sustained safely at 75% of Lynas 489 305 184 60% Revenue NEXT capacity despite challenges of COVID- EBITDA 235 60 175 292% 19 Net Profit after tax 157 (19) 176 n/a • Effective
Slide 4: FY21 Results
FY21 Results Production Volume (REOt) 25,000 620 Gross Revenue (A$'m) 20,000 520 420 15,000 320 10,000 220 5,000 120 5,223 5,444 5,898 4,656 5,461 2,257 3,896 0 20 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 NdPr (RTS) Others (RTS) Total RTS Volume NPAT (A$m) EBITDA (A$m) C
Slide 5: Meeting customer demand
Meeting customer demand . READY FOR SALE READY FOR SALE AVERAGE. PRODUCTION PRODUCTION SELLING PRICE VOLUME - REO VOLUME - NdPr 15,761 5,461 A$29.8 TONNES TONNES PER KG (FY20: 14,562 TONNES) (FY20: 4,656 TONNES) (FY20: A$21.5/KG) . . NdPr OXIDE CHINA SALES VOLUME COST OF SALES TOTAL REO DOMESTIC PRI
Slide 6: Safe, sustainable production
Safe, sustainable production • Enhanced COVID-19 health and safety protocols at both sites; zero workplace transmission in FY21 • 12-month rolling lost time injury frequency rate: 0.8 per million hours worked at 30 June 2021 (June 2020 0.8/m hours worked) • 12-month total recordable injury frequency
Slide 7: Meeting customer and investor needs for ethical and responsible Rare Earths
Meeting customer and investor needs for ethical and responsible Rare Earths Environment Social • Completed review and assessment of GHG emissions • Ongoing community consultation and engagement on key frameworks in FY21 projects • Continued to update Life Cycle Assessment • Increased support for our
Slide 8: Focus on operational Excellence
Focus on operational Excellence • Continuous improvement program driving operational performance at both sites • Continued strong cost control • Careful management of inventory despite international shipping delays • Ongoing investment in internal product innovation & R&D • Implementation of 7S mana
Slide 9: Favourable market dynamics
Favourable market dynamics • Global vehicle sales forecast to grow between 8 and 10% in 2021 (S&P Global Ratings) • Demand for electric vehicles has accelerated - global electric car sales rose by around 140% in Q1 2021 (IEA) • NdPr demand growing with forecast global demand for NeFeB alloys and pow
Slide 10: Developing our resource for the future
Developing our resource for the future Managing our Mt Weld resource to meet forecast demand growth: • Two new exploration drill holes established below the current Mt Weld pit floor • Significant and continuous intersections of Rare Earth minerals identified below the current life of mine • 1km dee
Slide 11: Leveraging downstream processing capability
Leveraging downstream processing capability • Sustained Lynas Malaysia production at 75% of Lynas NEXT capacity (original nameplate capacity) in FY21 • Successfully managed challenges including pandemic- related restrictions to the number of employees on site and disruptions to shipping and raw mate
Slide 12: Creating a foundation for growth
Creating a foundation for growth Progress on the Kalgoorlie Rare Earths Processing Facility: • Minor and preliminary works on site approved by the WA EPA in March 2021, including access road, site office and pad suitable for the delivery of steel tanks and kiln • EPA 4-week public review of the Envi
Slide 13: Expanding our industrial footprint
Expanding our industrial footprint Lynas signed 2 separate funding contracts with the United States Government in FY21: 1. Contract signed for Phase 1 work for the construction of a U.S. based HRE separation facility (27 July 2020) 2. Contract signed with the United States Government to build commer
Slide 14: Governments are alert to supply chain vulnerability and taking action
Governments are alert to supply chain vulnerability and taking action Japan • Ongoing focus on secure and sustainable critical minerals supply chains • Key market, supportive partner and senior lender to Lynas United States • 100-day supply chain review identified actions to Quad discussions on secu
Slide 15: Lynas 2025 growth plan to meet accelerating market demand
Lynas 2025 growth plan to meet accelerating market demand Malaysia United States Establish RE processing platform for Lynas Malaysia: Over 8 years of operation in LRE/HRE separation & specialty materials Gebeng, Malaysia Initial contracts for financial support signed Efficient Cracking & Leaching, S
Slide 16: Visit our Investor Centre at LynasRareEarths.com
Visit our Investor Centre at LynasRareEarths.com 16
Slide 17: Appendix A: JORC Compliance and Competent Person's Statement
Appendix A: JORC Compliance and Competent Person’s Statement Exploration Results The information in this report that relates to the Exploration Results is based on information compiled by Dr Sadangaya Ganesh Bhat. Dr Sadangaya Ganesh Bhat is a full-time employee of Lynas Rare Earths. Dr Sadangaya Ga