Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — FY2024 Earnings Presentation
23 slides from Lynas Rare Earths's earnings presentation, Aug 28, 2024
Slide 1: Lynas Rare Earths Limited FY24 Results Presentation
Lynas Rare Earths Limited FY24 Results Presentation 28 August 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Lynas Rare Earths Limited (ABN 27 009 066 648) (Lynas as a general guide only and should not be relied upon as an indication or guarantee of future or the Company) this presentation contains summary information about Lynas and its subsidiaries perfor
Slide 3: Acknowledgement of Country
Acknowledgement of Country You will need to 1. 2. Lynas xx Rare Earths acknowledges the Traditional Owners of the lands on which we live, work and meet, across Australia. We acknowledge and value Lynas’ Aboriginal and Torres Strait Islander employees, partners and communities and pay respect to thei
Slide 4: FY24 Financial highlights
FY24 Financial highlights You will need to Net Profit After Tax Sales Revenue $84.5m $463.3m FY23 NPAT: $310.7M FY23: $739.3m EBITDA Cash and Short Term Deposits $132.1m $523.8m FY23: $377.7m 30 June 2023: $1.01B 44
Slide 5: FY24 Operational snapshot
FY24 Operational snapshot 10,908t 5,655t Total REO production NdPr production FY23: 16,780 tonnes FY23: 6,142 tonnes $38.1 $579.3m Average selling price Capital invested in per kg REO property, plant, equipment & mine development FY23: $46.2/kg 30 June 2023: $595.5m 55
Slide 6: FY24 Safety in focus
FY24 Safety in focus 1.04 per million hours worked Lost Time Injury Frequency Rate (LTIFR) Improved from 1.2 in FY23 5.0 per million hours worked Total Recordable Injury Frequency Rate (TRIFR) Increased from 3.2 in FY23 and will be a focus for health and safety programs for FY25 400,000 hour, 6-week
Slide 7: FY24 Operational highlights
FY24 Operational highlights Continuing C&L operations in Malaysia following licence variation Total costs reduced by 17% FY24 compared to FY23 due to focus on efficiencies First shipment of MREC from new Kalgoorlie Facility Commenced 5-year mining contract with Carey Group at Mt Weld Mt Weld expansi
Slide 8: Mt Weld Mineral Resource and Ore Reserve Update 2024
Mt Weld Mineral Resource and Ore Reserve Update 2024^ 92% increase 63% increase 46% increase in mineral resources in ore reserves from in TREO from August from June 2018* June 2018** 2018 92% increase >35 year >20 year in contained Dy oxide Ore Reserve mine life Ore Reserve mine life from June 2018
Slide 9: Mt Weld Mineral Resource distribution
Mt Weld Mineral Resource distribution^ Extensive drilling Enhanced understanding of Expansive HRE halo program complete mineralogy in ore zones identified and scoped Plan view of hole collar points at Mt Weld. Current mined pit (grey) and dolerite dyke (green) displayed Plan view of Mt Weld Mineral
Slide 10: 92% increase in Mineral Resources
92% increase in Mineral Resources^ Mineral Resources estimate 92% increase in Mineral 46% increase in contained of 106.6 Mt at an average Resources from 55.4 Mt to TREO from 3.0 Mt grade of 4.12% TREO 106.6 Mt* to 4.39 Mt TREO* JORC Classification Million Tonnes TREO (%) TREO (‘000 tonnes) Measured
Slide 11: 63% increase in Ore Reserves
63% increase in Ore Reserves^ Ore Reserves now 32.0 Mt at 6.44% TREO 2.0 million tonnes of contained TREO 22% increase in contained TREO from 1.690 million to 2.064 million tonnes* 92% increase in contained Dysprosium oxide* ^See Appendix A * Compared to June 2018 Ore Reserves 11
Slide 12: FY24 ESG snapshot
FY24 ESG snapshot Diversity & Environment inclusion • 65MW (approx) Mt Weld • 24% women employees hybrid renewable power station early works • 21% women in operating roles commenced • 33.3% women Board • 0.75MW rooftop solar members panel installation underway at • 87.2% participation in All Lynas M
Slide 13: NdPr production & Total REO Average Selling Price
NdPr production & Total REO Average Selling Price NdPr Production Volume (tonnes) Total REO Sales Revenue ($m) and Average 2000 Selling Price (per kg) 1864 1725 1724 350 180 1800 1687 1579 1526 160 1600 1508 1504 300 1359 140 1400 1255 250 AUD per REOkg 1200 120 1045 REOt AUD’mil 1000 901 200 100 80
Slide 14: Lynas continues to invest to meet customer needs and grow with the market
Lynas continues to invest to meet customer needs and grow with the market Texas, U.S. Malaysia Facility Separation & finishing Facility Processing & separation Product LRE, HRE Product LRE, SEGH, Dy, Tb Status Planned project Operational (expansion & DY/Tb Status Target ~1.3ktpa NdPr finished separa
Slide 15: Mt Weld: Significant progress on growth plan
Mt Weld: Significant progress on growth plan Mining operations recommenced on continuous basis Exploration drilling program successfully completed Mt Weld Expansion project well progressed Mt Weld Mineral Resource and Ore Reserve update (5 August 2024) ^ 15 Photo: Mt Weld mine pit ^See Appendix A
Slide 16: Mt Weld Expansion project: FY24 progress
Mt Weld Expansion project: FY24 progress Stage 1 construction completed and commissioning commenced Construction of Stage 2 (balance of plant) underway for completion by end of FY25 Early works commenced on approx. 65MW gas-firmed hybrid renewable power station for operation in CY26 16 Photo: Mt Wel
Slide 17: Kalgoorlie Facility: First production achieved
Kalgoorlie Facility: First production achieved Ramp up aligned with increased First shipment of MREC dispatched Focus on efficiency and initiatives Mt Weld & Malaysia production to Lynas Malaysia June quarter to improve cost competitiveness capacity and market demand 2024 1717 Photo: Kalgoorlie Faci
Slide 18: Lynas Malaysia: Expanding capacity and product range
Lynas Malaysia: Expanding capacity and product range Variation to Lynas Malaysia operating licence enabling full Mixed Rare Earth Carbonate operations and expansion (MREC) receival facility completed and commissioned Most significant upgrade works program in over a decade completed December 2023 Ini
Slide 19: U.S. Rare Earths Processing Facility: FY24 progress
U.S. Rare Earths Processing Facility: FY24 progress US$258m follow-on contract signed with U.S. DoD for construction of U.S. Heavy Rare Earths plant Detailed engineering, procurement and approvals activities continued including the Environmental Policy Act (NEPA) environmental approval process which
Slide 20: Caring for our communities
Caring for our communities Lynas supported the Cycling Development Foundation (CDF) NAIDOC Week celebrations in The Kalgoorlie team members and their families joined the Kalgoorlie-Boulder Urban Landcare Laverton, which held a special event and bike riding activities. Group (KBULG) for its annual Tr
Slide 21: Lynas: Productive, profitable and growing
Lynas: Productive, profitable and growing Low cost production 2024 Mineral Resource & Ore Reserve Update Expanded operating footprint Increased product range (LRE & HRE) Additional production capacity 21
Slide 22: Visit us at LynasRareEarths.com
Visit us at LynasRareEarths.com 22
Slide 23: 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 is based on, and fairly represents information and supporting documentation jointly prepared by Marcelle Watson, Geology Manager, and Dr. Ganesh Bhat, Principal Resource Geologist. Marcell