Lynas Rare Earths Limited

Good day and thank you for standing by. Welcome to Liner's quarterly results briefing. At this time, all participants are in 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 will then hear an automated message advising your hand is raised. To explore your question, please press star 11 again. Please be advised that today's conference is being recorded. I will now like to hand the conference over to Linus. Please go ahead.

Good morning and welcome to the Linus Ruris Investor Briefing for the quarter ending 31 March 2026. Today's briefing will be presented by Amanda LaCaze, CEO and Managing Director. Joining Amanda on the call today are Garden Sturzenegger, CFO, Paul LaRue, COO, Daniel Havas, VP Strategy and Investor Relations, Chris Jenny, VP Sales and Market Development and Sarah Leonard, General Counsel and Company Secretary. To Amanda to commence the briefing, please go ahead Amanda.

Thank you, Jen, and thank you everyone for joining us again this morning. Jen tells me that we've had people registered to ask questions since about quarter to midday. So on that basis, I will keep my comments to a minimum so we have plenty of time to deal with the questions. But just as sort of a few general comments. I often say that, you know, we've had a very busy quarter and guess what? We just had a really busy quarter. Actually, maybe busier than most. We were very pleased with our progress during the March quarter when we put in place a number of initiatives which will provide foundations for the future success of the business and improve resilience and also ran an operationally good business in the meantime in terms of continuing to be the only non-Chinese producer at scale of both NDPR of lights and heavies. So during the quarter, and I think most people have observed that the price of NDPR has progressively firmed over the year. We certainly saw the benefits of that and we recorded one of our top three ever quarters in terms of revenue. And it does appear that the market settings remain positive for the fourth quarter of this financial year. And of interest, I sort of looked back on the very first quarterly that I ever delivered And this puts into stark contrast the difference between, you know, maybe, you know, businesses at the start of their journey in rare earths and where they may be some years later. The first quarterly that I was, you know, delivered was 445 tonnes of NDPR. Well, you know, we delivered 2,000 tonnes this quarter. 31 million in revenue versus 265 million in revenue this quarter. So, you know, it's, I think, a reminder of just, you know, sort of the various steps that we have taken over that period of time to, you know, consolidate our position as, you know, the global leader outside China. Our production is not quite at our 10,500 tonnes per year run rate, but it is moving towards it. During the quarter, we have continued to ramp up the final parts of the mouth weld expansion, and I am delighted to say that we have that ramp up so far. is at or above a McNulty 1 ramp-up curve. And I think that's the first in rare earths. But even with that, there are still some challenges, as we've brought that facility online, ensuring that, you know, like in the early stages, con grade was lower than it had been in our nice, mature facilities. little old plant and so the team has been working on that and they've lifted that up but that did give us a few challenges downstream and we've had a few logistics challenges but I'm sure that any of you on this call who have listened to any sort of results call would recognise that logistics has its own set of challenges at present. Heavy rare earths production, you know, that's really the performance during this quarter just reflects the batch processing nature of our heavies at this stage. And, you know, for those of you who've been up to the lab, you will have seen, you know, that the... You know, we're packaging this in 25 kilo drums and... you know, you will have seen the small furnace that we use and so, you know, we accumulate material, we run it through on a batch process and so therefore there's a bit more lumpiness in our production outcomes. However, suffice to say that within, you know, sort of our sales process with respect to the heavies, we are having a great deal of success in being able to plate those carefully and leverage full benefit from those sales. Of course, our sales outcome, the total revenue was very pleasing. I've seen some comments already on the price per kilo increase. And, of course, we aimed to make that clear within the report that that reflected primarily product mix with some higher sales of lower value LA and CE during the time. And the comparison on the NDPR is, of course, that we sell our NDPR on contracts and we With many of those, there's about a one-month lag till we see the price flow through into our revenue due to the nature of the contract. Costs remain tightly controlled. Notwithstanding, we have indicated in this that we would expect that there may be some further influences from the conflict in the Middle East. This could you know, sort of will likely reflect those materials which are, you know, sort of directly affected by oil and gas, but also just looking at things like, for example, the Fair Work Determination last night on ensuring that transport providers are able to recover costs, increased costs from fuel as a consequence of the Middle East conflict. However, I would point to you something of which we are enormously proud, and that is, as we have moved to our hybrid renewable power station at Mount Weld, that our diesel use now is virtually only in the mining fleet at the Mount Weld site, And the renewable power station is actually delivering significantly more than design, where we're expecting renewables to be delivering around about 70% of our power requirement, and the average renewable content was 95.7. That is 870,000 litres of diesel saved just during the March quarter. So this does put us in a much better position as we're looking at, you know, sort of the various global effects at present. It's a pretty exciting quarter in terms of putting together a number of the long-term building blocks for our company. The JARE offtake agreement, which was announced on the 10th of March, is really significant, and I think everybody's read that in some detail by now, but firm offtake with a floor price is really important to us. An upside sharing arrangement, which is, we believe, relatively modest, although beneficial to both parties. And we are, you know, sort of seeing this as really a really solid base for the business as it moves forward. Followed that up with, you know, an MOU on working alongside our Japanese partners on further resource development, either at Mountveld or other resources. And this is, you know, our work with JARE and JOGNEG on resource development has proven to be very constructive for our company over time and we look forward to pursuing that further. In addition, we announced the US letter of intent, binding letter of intent with the US government which sees the funding which was previously announced being reallocated to the purchase of rare earth products from our existing and planned facilities. And then, of course, as we've indicated previously, we are focused on developing strong and constructive partnerships with respect to metal and magnet making. Our key announcements there during the quarter are both related to Korean firms, who we see as being potentially extremely good partners technically and also in terms of efficiency and economic outcomes. So LS Cable for metalmaking at their Vietnam plant and continued work to move to definitive agreements with JS Link for the new magnet facility in Malaysia. So all in all, as I said, a very busy quarter where we, you know, A, focused on running a good business, continuing to take full advantage of the fact that we are the only ones who can take full advantage of the positive market at present but at the same time ensuring that we're setting ourselves up for success, including with the sort of agreements, the agreements with both Japan and the US, the development of new capability and also within our sales group of, sorry, within our sales team ensuring that we're setting up a customer portfolio which will serve us well in the future and ensure that we leverage full benefit from our bundled sales. And of course, the final and really significant point also, which sort of underpins the ongoing success of the business, is the new license, which was Renewed in Malaysia, our operating licence was renewed for 10 years from the 3rd of March. We have been advocating for some time for an extended licence rather than the three-year licence periods on which we have operated to date. That required a change to the AELA, the Atomic Energy Licensing Act in Malaysia. which was affected late last year and was then under those varied conditions is the issuance of this 10-year licence. It's certainly, you know, we're very pleased with that. We remain, you know, strongly committed to Malaysia, which has proven... notwithstanding few twists and turns, to be a very productive environment in which Linus has operated. So having got to there, I'm really happy to take any questions now. And I think, Jen, are you the one sorting those out?