Extract from an AFR article in which Lynas’ CEO says that this is not the first time the market has behaved the opposite of what she would expect it to.
Amanda Lacaze-led Lynas said China’s ramp-up was a sign the market would continue to grow after it reaped record prices for its rare earth products in the March quarter.
However, the Lynas share price plunged almost 8 per cent to $5.88 by late on Tuesday.
Ms Lacaze refused to speculate on whether the talk of China boosting production so substantially had spooked investors.
”This is not the first time that the market has behaved exactly opposite to the way I would have expected it to behave,” she said.
Lynas, the world’s biggest non-China producer, said demand from its customers had bounced back to match or surpass pre-COVID-19 levels and only shipping delays linked to the blockage of the Suez Canal in March prevented it achieving record quarterly sales revenue.
The company recorded sale revenue of $110 million for the March quarter, down from $119.4 million in the previous three months, on the back of an average selling price of $35.5 a kilogram across all rare earths materials.
LYC Price at posting:
$5.85 Sentiment: None Disclosure: Held
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