Investing.com-- Lynas Rare Earths Ltd (ASX:LYC) posted a nearly 22% rise in its third quarter revenue on Monday, as the Australian rare earths miner benefited from increased selling prices amid supply ructions in China.
Lynas (F:LYI) posted gross revenue of A$123.0 million ($78.6 million) for the three months to March 31, up from A$101.2 million last year.
The company said it is poised to benefit from a bitter trade war between the U.S. and China, especially as China’s rare earth shipments to the U.S. fell sharply in the face of steep trade tariffs. China also introduced export controls on heavy rare earths and related materials.
Lynas- the world’s biggest producer of rare earths outside China- said it is “ideally positioned to contribute to supply chain diversification and to benefit from favourable market conditions” stemming from U.S.-China trade tensions, although it will take some time for customers to organize new supply chains.
The company recently completed modifications at its Malaysia facility to process heavy rare earths dysprosium and terbium, making it the only producer of the two outside China. Production of the two materials is set to begin between May and June.
Lynas’ stock is trading up nearly 27%, vastly outpacing the ASX 200 on bets that the company will benefit from its position in the rare earths supply chain.
Rare earths are a group of 17 elements used in a variety of applications, from consumer electronics to defense. While they are relatively abundant in the Earth’s crust, their extraction and refinement is difficult due to their low concentration.