Lynas Rare Earths Limited

Management said FY26 results were a “wonderful improvement,” driven by higher market prices, a premium achieved by sales and marketing, and slightly higher product volume. No specific FY26 revenue, EPS, or gross margin figures were stated in the call. On costs, CFO Gaudenz Sturzenegger said G&A increased by $34 million, including $23 million of underabsorbed costs tied to ramp-up that should unwind as Kalgoorlie fully ramps, and about $10 million of other G&A with more than half related to leadership change. He also noted sulfuric acid costs are about 4x higher than 12 months ago, though he expects some moderation within the financial year. For FY27, management said production should be “fairly higher” than FY26, with growth tied more to industrial performance and ramp execution than to demand, while LAMP is still working with regulators to raise the annual concentrate allowance to 110.

Interim CEO Pol Le Roux framed Lynas as a company defined by its people, expertise, and ability to solve problems while building future capabilities. He emphasized that the business is now in a “harvesting and growing” phase: Mt Weld and Kalgoorlie are stabilizing, Kuantan is performing strongly, and the company is advancing heavy rare earths, downstream magnets, and recycling. His tone was confident and ambitious, repeatedly saying the company is “on track,” “under control,” and better equipped than at any point in recent years.

Gaudenz Sturzenegger focused on the cost bridge and said the current cost base should not be used as a steady-state forecast. He quantified the G&A increase at $34 million, with $23 million of underabsorbed costs linked to ramp-up and $10 million of other items, much of it one-time leadership-change related. He added that the base should ease as volumes rise and ore-quality issues work through the system, but sulfuric acid remains a major headwind at roughly 4x last year’s level. He also pointed to the company’s capital discipline, noting the year’s CapEx reflected the big expansion and industrial projects already decided and disclosed.

Analysts pressed management on FY27 production, off-take capacity, costs, capital allocation, and how much of the $1.2 billion cash balance might be deployed. Management said FY27 NdPr production will be “fairly higher” than FY26, but did not give a number, and said additional offtakes are in discussion with OEMs and new magnet makers. On capital allocation, Pol said priority is the heavy rare earth separation program and smaller “quick wins” CapEx, while larger projects and inorganic opportunities are still being evaluated and are not yet fully defined. On costs, management said the FY26 G&A step-up was partly temporary underabsorption and partly one-time items, and that Mt Weld ore-quality issues have now been materially improved.