Lynas to Halt Kuantan for a Month in December After Record A$310.1 Million in Sales
Key Facts
Lynas Rare Earths plans to shut its Kuantan facility in Malaysia for about a month in December for preventive maintenance and minor operational upgrades, management said on a call discussing its September 2026 quarter results. The shutdown follows record total sales revenue of A$310.1 million for the quarter, up from A$288.9 million in the previous quarter and A$200.2 million in the same quarter of the prior financial year. Management said the main maintenance task is to replace a furnace brick at Kuantan. The company will also use the shutdown to make upgrades aimed at increasing the facility’s nameplate capacity. Management did not describe the shutdown as an unexpected disruption, but included it in planned maintenance and development work.
Alongside record revenue, saleable rare earth oxides production was 4,254 tonnes in the September quarter, including a record 2,082 tonnes of neodymium-praseodymium oxide. Average selling prices also rose to a record A$102.1 per kilogram, up 88% year on year. Management attributed strong sales to improving market dynamics, higher prices, demand for rare earth supply chains secured outside China, and the company team’s ability to execute. The interim chief executive said “confirmed demand for a rare earth supply chain secured outside China” supported results alongside higher prices. The company reported revenue of A$977.9 million for the financial year ended June 30, 2026, compared with A$556.5 million in the previous year, providing context ahead of the September-quarter performance.
Production and sales figures indicate the company built inventory ahead of the December shutdown. Production exceeded sales by about 1,200 tonnes in the September quarter, mainly because of strong output in the quarter’s final month. Management said the inventory build would help meet demand during the shutdown and that it was monitoring customer needs closely. The interim chief executive added: “We have sufficient inventory. We are monitoring this closely with our customers, and they are used to this pattern.” Management expected no customers to be deprived of supply during the quarter, noting that the second quarter is usually weaker than the first and other quarters. The company therefore believes that lower production related to maintenance will not prevent it from meeting customer sales during that period.
The Kuantan shutdown coincides with other work in Australia during December. Management said the Kalgoorlie facility would be shut for slightly more than two weeks after Western Power requested an electricity network upgrade. Lynas plans to use the shutdown to improve equipment reliability at the facility. The company also said Mt Weld mine production in September exceeded downstream processing requirements at nameplate capacity. These developments place the maintenance work within an operating plan covering mining and processing sites, with inventory built to support sales during the period of lower production. Management did not specify any effect of the shutdowns on global prices or supplies beyond the company’s customer base.
After completing the maintenance and upgrades, management aims to start the January quarter at maximum production rates, with more reliable equipment and higher nameplate capacity at Kuantan. It said the minor upgrades are intended to address a bottleneck in gas processing, as well as increase capacity ahead of the cracking stage. The company links this schedule to the possibility of resuming operations more efficiently after the December shutdown, while relying on available inventory to meet quarterly orders. The company’s upcoming dates include its annual general meeting scheduled for November 25, 2026. In a price snapshot cited by Investing.com coverage, the stock was trading at $12.65, up 1.12% from its previous close of $12.51.