Lynas Rare Earths Limited

Today, and thank you for standing by, welcome to Linus quarterly results investor briefing. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 11 on your telephone. You'll then hear a message advising your hand is raised. Briefly advise that today's conference is being recorded. I would now like to hand the call over to Linus Randolph.

Good morning and welcome to the Linus Rare Earth Investor Briefing for the June 2025 quarter. Today's briefing will be presented by Amanda LaCasse, CEO and Managing Director. And joining Amanda today is Gaden Sertzenegger, Chief Financial Officer, Sarah Leonard, General Counsel and Company Secretary, Daniel Havas, VP Strategy and Investor Relations, and Chris Jenny, VP Sales and Market Development. I'll now hand over to Amanda to commence the briefing.

Good morning, everybody. I'm told that we've already got lots of people in the queue for questions, so I will keep my opening remarks relatively short because I did get some feedback from somebody that, you know, they felt that we never had quite enough time to cover all the questions. Having said that, having thought a bit about some of the questions you might ask, For those of you who are aficionados of Insiders on Sunday mornings on the ABC, you might find that, you know, I have borrowed on some of the language that the politicians often use there, which is, oh, well, I would not be using Insiders on Sunday morning to announce new policy. But we'll see as we go in terms of the questions. We are very pleased to deliver this report for the final quarter of FY25 because it does mark the delivery of a number of, as we call them, firsts, but certainly we've had a significant development and investment program over the last five years And so as we look at our business, we expect really every month to be a record month and every month to be better than the one before. So Paul's famous quote, better than yesterday and much worse than tomorrow. And we continue to be very focused on how we deliver growth in what is an excellent market in which to be participating and which we expect will continue to be a significant growth market. Of course, the first and most important, we exceeded 2,000 tonnes of production for the first time in this quarter, and as I said, you know, my conversation with our production team is that the expectation is that each month will be a record month, although I qualify that again with the fact that we're not just going to produce for the sake of producing, but we did increase the run rate progressively as the month went on. I would like to particularly sort of reflect on the excellent performance at Mount Weld in terms of current production, production over FY25, built sufficient inventory that we were able to have a shot in this month, which de-risks the transition from the old plant to the new plant. I think as our general manager there said, the old plant can now be retired, I forget the word he used, but basically with a claim. It has certainly, for really a very small facility, served us very well over the past decade. Certainly very big news for the quarter was the first production of dysprosium oxide and terbium oxide at our new production line in Malaysia. They both came out in May and June respectively, marking the first commercial production of separated heavy rare earth polymers and the first commercial production outside China in many, many years. At Mount Weld, as we finish the Mount Weld expansion project, and as noted in the report, you know, all of the major construction is now complete with non-process, some non-process construction ongoing. The project has been an excellent project for us and it is certainly... to date, working as designed, which is, of course, the most important thing, but also on time and on budget. The installation of the first wind turbine at Mount Weld and the completion of the solar farm are important markers as we transition from diesel-based power generation to largely renewable energy sources at Mount Weld. consistent with our position in the market as a sustainable producer of rare earths. And then in Malaysia, we have two important steps, which is a signing of an MOU with the Kelantan Menteri Bazaar Inc. for the development of upstream rare earth deposits in Malaysia. and the signing of an MOU with JS Link from Korea for the development of downstream assets in the form of a new magnet manufacturing facility. So we are really pretty excited about coming to the end of really the big capital build portion of our activity and the fact that we now can start to bank many of the benefits from those investments. I'm sure that everybody will be keen to hear our view on some of the industry shaping initiatives that have been announced, particularly out of the US. I mean, what a roller coaster we've had over the last four or five months, and I'm sure that's the same for Australia. observers of any sector at present, with the imposition of tariffs, with the imposition of export controls, with the release of some of those export controls, and then leading through to some of the announcements out of the US last week with respect to industry building. On balance, our view is that developing a vibrant outside China industry will be good for everyone, for all participants, but it will be best for us because we are today the only scale producer of light rearers and heavy rearers and we are an efficient producer and I think as we've seen at times over the past decade in particular, having our assets in place and operational when the cycle turns, and we are looking at some very positive moves in terms of price right now, means that we can take full advantage of that upswing. Of course, for us, Our heavy rare earth production is key to our competitive advantage. It's important because we could certainly on current production rates be sold out several times over. It allows us to participate in segments where sensitivity to pricing is much lower than in some of the magnet supply chains. And it gives us an opportunity to bundle material with our NDPR and be able to meet the needs of some of our most strategic customers so that, I sometimes joke internally, so that we can be the wife rather than the mistress, you know, so we can actually provide the full suite of materials to these strategic customers. Our task now is looking at the next stage of production of heavies, and as everyone knows, we have the project in the US on which work continues, but as well as that, we are looking at additional opportunities to increase output from our Malaysian facilities. So all in all, we see this as a pleasing end to the 2025 financial year and are looking forward to 2026 with a great deal of enthusiasm. And so with that, I think that it's a good idea to move straight on to take questions.