LYC
Lynas Rare Earths Limited
ASX
ESG Report FY2024
Sentiment:
ESG Report
10 October 2024 5:27 PM
Lynas Rare Earths released its 2024 ESG report, highlighting a $463.3 million revenue, $84.5 million net profit, and significant investments in renewable energy and sustainable practices.
Worse than expected
The net profit after tax was significantly lower than the previous year, indicating worse than expected financial performance.
Summary
- Lynas Rare Earths' 2024 ESG report covers the period from July 1, 2023, to June 30, 2024.
- The company reported sales revenue of $463.3 million and a net profit after tax of $84.5 million.
- Lynas employs 1,117 people across Australia and Malaysia, with 24% being women (a slight decrease from 25% in FY23).
- The company invested $579.3 million in capital and mine development projects in FY24.
- A new 65MW gas-firmed hybrid renewable power station at Mt Weld is expected to reduce GHG emissions by approximately 60,000 tonnes of CO2-equivalent per year.
- Lynas achieved a 12-month rolling lost time injury frequency rate of 1.04 per million hours worked.
- The company invested approximately $10.1 million in research and development (R&D) in FY24.
- 75% of inputs for Australian operations and 89% of inputs for Malaysian operations were sourced locally.
- Total taxes and royalties paid in FY24 were $61.9 million.
- Direct community investment was approximately $0.4 million.
Sentiment
Score: 6
Explanation: The report presents a mixed sentiment. While the company highlights positive ESG initiatives and investments, the significant decrease in net profit and revenue compared to the previous year lowers the overall score.
Positives
- Significant investments in renewable energy infrastructure are underway to reduce carbon emissions.
- The company achieved a decrease in the lost time injury frequency rate.
- High percentage of local sourcing for inputs (75% in Australia and 89% in Malaysia).
- Positive employee engagement survey results, with 88% of staff recommending Lynas as a great place to work.
- Continued progress towards gender diversity targets, although the overall percentage of women employees decreased slightly.
Negatives
- Net profit after tax decreased significantly compared to FY23 ($84.5 million vs $310.7 million).
- Revenue decreased significantly compared to FY23 ($463.3 million vs $739.3 million).
- The percentage of women employees decreased slightly compared to FY23 (24% vs 25%).
- Total recordable injury frequency rate increased compared to FY23 (5.0 vs 3.2 per million hours worked).
Risks
- The company's performance is subject to market and price cycles for rare earth materials.
- Social media disinformation campaigns pose an ongoing challenge.
- Meeting the new Australian mandatory climate-related financial reporting requirements will require significant preparation.
- Maintaining water recycling rates and completing construction of the Mt Weld water recycling plant are key targets for FY25.
Future Outlook
In FY25, the team remains focused on fulfilling key customer needs, maximising internal efficiencies and delivering excellent value for our shareholders. Capital expenditure is expected to be approximately $400 $500 million in FY25 for sustaining capital and major growth projects.
Management Comments
- At Lynas we are proud to be an ethical and responsible rare earths producer.
- We recognise our unique position as the only scale producer of separated rare earth materials outside China and always seek to ensure that our operations meet the high environmental, social and governance (ESG) standards expected by our people, communities, customers, investors and our other important stakeholders.
- Care and ensuring that everyone working at Lynas goes home safe and well is a core value of our company.
Industry Context
Lynas's report highlights its unique position as the only significant producer of separated rare earths outside of China, emphasizing the growing global focus on securing diverse and resilient supply chains for critical minerals. The company's investments in renewable energy and sustainable practices align with broader industry trends towards decarbonization and responsible resource management.
Next Steps
- Prepare for new Australian mandatory climate-reporting requirements.
- Complete construction of the gas plant as part of the staged installation of the hybrid renewable power station at Mt Weld.
- Maintain current water recycling rates and complete construction of the Mt Weld water recycling plant.
- Rollout the PASS safety program to Lynas Australian sites.
- Submit the first Mt Weld Compliance Assessment Report.
- Submit the next iteration of the Kalgoorlie mine closure plan.
Key Dates
- July 1, 2023: Start of the 2024 financial year
- November 2023: Lynas Climate Change Policy updated
- December 2023: Fifth iteration of the Mt Weld Mine Closure Plan approved
- January 2024: Annual geotechnical audit of Mt Weld tailings storage facilities completed
- February 2024: Lynas published its first gender pay gap results for Australian operations
- March 2024: Lynas reported under the Workplace Gender Equality Act for Australian operations
- May 2024: Eleventh iteration of Mt Weld Radiation Management Plan approved
- June 2024: First production of Mixed Rare Earth Carbonate (MREC) commenced at Lynas Kalgoorlie; Company-wide Employee Engagement Survey undertaken
- July 2024: Contracts for the supply of power from a 65MW gas-firmed hybrid renewable power station at Mt Weld signed
- August 2024: New Australian mandatory climate-related financial reporting regime passed by Parliament
- October 2024: Variation to Lynas Malaysian operating licence, committing to increased R&D investment
- June 30, 2024: End of the 2024 financial year
- December 31, 2024: Lynas Rare Earths FY24 Modern Slavery Statement to be released
Keywords
Rare Earths, ESG, Sustainability, Mining, Renewable Energy, Australia, Malaysia, Financial Results, Climate Change, Safety
LYC
Lynas Rare Earths Limited
ASX
Sector: Materials
Filings with Classifications
Better than expected
17 June 2025 6:36 PM
Production Update
- The successful first production of Terbium Oxide represents a significant expansion of Lynas' product capabilities and a positive operational milestone.
Worse than expected
26 February 2025 11:03 PM
Results Presentation
- The company reports a profit in a challenging market, implying that the results were worse than expected.
Worse than expected
25 February 2025 4:04 PM
Half Year Report
- The net profit after tax decreased significantly from $39.5 million to $5.9 million, indicating a worse financial performance compared to the previous year.
Better than expected
25 February 2025 4:04 PM
Results Presentation
- NdPr production increased by 23% compared to 1H FY24.
- Sales revenue increased by 8% compared to 1H FY24.
Worse than expected
25 February 2025 4:04 PM
Interim Financial Report
- The results were worse than expected due to a significant decrease in net profit, driven by lower rare earth prices and increased production costs.
Worse than expected
16 January 2025 4:43 PM
Quarterly Report
- Production volumes were lower than planned due to issues with impurities in the MREC feedstock and the annual processing limit in Malaysia.
Delay expected
16 January 2025 4:43 PM
Quarterly Report
- The chemical inputs required for the treatment of MREC impurities were not available until December 25th, causing a delay in production.
Delay expected
26 November 2024 5:25 PM
Annual General Meeting Presentation
- Site works at the US facility are on hold due to a wastewater permitting issue.
Better than expected
26 November 2024 5:25 PM
Annual General Meeting Presentation
- The significant increase in Mt Weld Mineral Resources and Ore Reserves, coupled with the successful completion of major projects and cost reductions, indicate results better than might have been expected.
Delay expected
29 October 2024 5:24 PM
Quarterly Report
- A permitting issue related to wastewater management has put a hold on earthworks for the U.S. Rare Earths Processing Facility.
Worse than expected
29 October 2024 5:24 PM
Quarterly Report
- Rare earth prices remained low throughout most of Q1 FY25, resulting in lower than expected sales revenue compared to previous quarters.
Worse than expected
10 October 2024 5:27 PM
ESG Report
- The net profit after tax was significantly lower than the previous year, indicating worse than expected financial performance.
Worse than expected
10 October 2024 5:26 PM
Annual Report
- The net profit after tax decreased significantly from $310.7 million in FY23 to $84.5 million in FY24, primarily due to lower rare earth prices and reduced production volumes.
Delay expected
10 October 2024 5:26 PM
Annual Report
- Earthworks for the planned U.S. Rare Earths Processing Facility have been delayed until a permitting issue related to wastewater management is resolved, which is unlikely to happen before the end of 2024.
Better than expected
4 August 2024 8:02 PM
Company Presentation
- The company announced a 92% increase in Mineral Resources and a 63% increase in Mt Weld Ore Reserves.
Better than expected
4 August 2024 6:18 PM
Resource and Reserve Update
- The Mineral Resources and Ore Reserves have increased significantly compared to the 2018 estimates.
- The contained Dysprosium oxide in Ore Reserves has increased substantially.
- The updated Ore Reserve supports a longer mine life at expanded production rates.
Worse than expected
22 July 2024 6:11 PM
Quarterly Report
- The company's REO and NdPr production were lower than the previous quarter.
Delay expected
22 July 2024 6:11 PM
Quarterly Report
- Completion of Stage 2 of the Mt Weld Expansion Project is now expected by the end of FY25.
- Delays in receiving concentrate due to disturbances to the global shipping industry and kiln maintenance shutdowns impacted downstream production.
Delay expected
11 July 2024 6:25 PM
Missing type for ID: 3288
- ASX:LYC announces a delay.
Delay expected
19 June 2024 7:32 PM
Investor Presentation
- Many new rare earth projects have stalled.
Worse than expected
19 June 2024 7:32 PM
Investor Presentation
- Pricing at surprisingly low levels following strong production growth inside China.
Delay expected
23 April 2024 6:19 PM
Quarterly Report
- The commissioning timeline for the Kalgoorlie facility has been extended, leading to a budget increase.
Worse than expected
23 April 2024 6:19 PM
Quarterly Report
- The Q3 FY24 revenue was significantly lower than the previous year due to lower NdPr prices and the decision to hold inventory.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.