Lynas Rare Earths Limited (LYSDY) 22 Oct 212022 Q1 Earnings call transcript

Thank you all for standing by, and welcome to the Lynas Quarterly Results. [Operator Instructions]. Please be advised that this call is being recorded today. And I'd now like to hand the conference over to Lynas Rare Earths. Thank you. ahead. go Please

Lacaze. welcome for and briefing Lynas Earths Director, Rare be Good Havas, September Amanda. Amanda and of Amanda. Please to General Quarter and Briefing Amanda Managing go and Investor the by CFO; Today's joining of now Investor presented I'll Leonard, Strategy Company Sarah morning, ahead, CEO VP the And FY will Secretary. today and hand Sturzenegger, are Counsel Gaudenz Daniel Relations; over to XXXX.

revenue and everybody from about morning, keen present Pleased today. Good Anyway, special delivered pretty growth are one hope record, hello yes, demand the about joining Jen. able demand high Thanks, and out prices. highest be quarterly of aren't and And to too who's very future to a strength very that's anyone a we results. most lockdown. of got lot that's second things thanks strong because end Melbourne. -- the guess quarter for in our and see We've continuing to the customers reflecting is to the to be you're I the that price. of really joining and And on I making optimistic prolonged joining your our continue and enthusiastic maybe you today terribly of us

and a back period the the Malaysia, up with we've As in In the an X,XXX of by at definitely we we difficult started think almost about, day wave of we it in to a created for the it the vaccination And day. in completely lot the plus peaked our the quarter, at to was about down about time, of significantly that pandemic really it dropped pressure was the XX,XXX, pandemic. where it then through weeks we period sort extended about But was quarter, end We own around quarter. -- people. And was the workforce. that a within during challenges cases every day. of XX,XXX rates however, cases did And there Malaysia, XX,XXX cases a within mean dealt some of course, infection including, of were a Malaysia, with an looking day, of cases increasing of of community. most contained reflected the X,XXX everyday or of that several the minus, our the third course,

exposed and to own Some run it. track program. careful of very trace were our staff our We

isolate been really some either because in or with say contact staff family. so staff have had we've of whole that as suffer colleagues take our And -- crews, instances, who recovered. they had in having to it who did had staff we with tended where each other. be the contact their isolating, close from But did I'm our report, COVID we pleased noted to to all have to in

our lab the hard And for of wherever the put work a required them you to skilled there. doing so to staff highly limit Say, some there take technician a into is we redeploy. can redeployed whilst that example, possible, across number and it's the site,

well. presenting But issues get and to about the cover shipping, the our Of of our about of XX the logistics seeing Notwithstanding but course, pandemic, few pretty rover, tightening further above, was this to is up the as which all ships manager. the waterfront on Australia for thought now for we red a by sort in all were challenges in unrest. over, we by got pandemic effects continuing biggest we're effects Australian with written do there's excited production on shipping, vaccination the site, sort pleased particularly into some at a Western some with September, we're of set in part lot with us, mandate. the industrial will containers October. relates our days of exacerbated we We of on of one Malaysia, outcomes of as and, issue absolutely complying that extension, very and Government's to concentrate stage, In in the ability in receded continue the Australia, seeing we're

support and want people any people illness the aware, in terms Government are fact would philosophically all any to, a way, population. be that certainly and our location we most Australian into fly-out now -- the issued not for workers. in in operating for that the local remote for safe introduce fly-in, a would workplace into mandatory managing of As Western orders has vaccination certainly We this

for Australian to exciting Australia early will report we're Providing couple again Western and the happy approval. will start So in of other that hopefully, recommend project that in very mandate. updates very that comply happen year. Western a new the out the It's on EPA with mean to the now of And in had Kalgoorlie. travel the we've

believe with a wait at that have to at many interestingly, be in Adelaide, we we're receive on including started are already on report. I'm extended asked chartered steps the ministerial previously, confident get photo preliminary ahead very led it at rate specially I sort ship. this, it shape site miner the of way person. we're that in on will of to said, weeks with compliance works out the approval. which And our pass to Of aerial great can kiln. have some The shared The Australia able showing well and final you more lands. an for many and can't as in the It's Kalgoorlie, we shortly sitting receiving see that -- WA we has which giant in its in see some photos being present not tenders. why a Quite truly and of analysts But -- couple course, of into the work, still I around We've when spending good of it's through there to to our statement. gate. you the stay.

for of We lead orders have long our items. placed time all

placed -- about and the of orders those been some requirements overruns deal got pricing. equipment in So have they contracted. over And tendered and confidence that of have we've total cost area, got XX% we've agreed concerns contracts on have our because of a been great of sort

continue EIA were we've to on bit approvals and have been of for not more, that CapEx worried you at out site. -- about accelerate lodged has and spend actually have the previously, So comment you works progress for continue higher a as who the do than is a spending good public those We've expect will in we this Estate see quarter we to Malaysia there the the preferred in and site we to that had made for accelerate present. Industrial now the PDF, Gebeng also on so

be seeing a the optimizing At certainly ensure our heavy at -- up give experts meet had workforce lot safety sort have objective, did of to we growth longer rapid of way material. in operation the the our respect which the were time, growth that ensure a when confidence always business what the as word standing market a we all, of of to becoming and to Lynas, in vaccinations well We, time through market. would our terms in all we to bank health wishing business continuation we ready think and facilities, a is and facilities, of in it our But us "COVID" our first the all came ever but acceleration I us say are of known of progress The not of our really over benefits as So comfort the we that we years to no as past aimed and lifting indeed, those processing as this. to that lot in performance. just in of with we're ensure market. into phase the their as moved few

inflection to that people that I'd it's We think ready the are we're advantage market. particularly And take of next X to the growth. to have. to We might with going in years, happy take that now and any that over questions be growth in exciting be X that, seeing

[Operator Instructions].

comes Our first from Morgan at Daniel question Barrenjoey.

First well, -- recommendation. That's forward. on congratulations EPA a step question huge the

$XXX the of in wondering light the while is obviously, estimate you market a on could market in you Just what just of given was wondering see which comment WA now. of can tight everyone very what, if can I'm on a And million, budget ago contractors. capital that for that, cost about $XXX and employees million? say

Daniel, welcome looking the guess in that after are garden? the all I back. time good roses

there. back I'm are. they Yes,

lot I'm one our So ordered reasons previously, on so can done is photo do got time our we've time, and lead there whether the sort the showed why all on will equipment. total in of our the bring which make we aware We've is a items budget. we of speculation you to we sort this of projects stressed and as yes, that to of At have we long site, that the time -- of fact starting progress. I -- are of XX% see of about

to to bring time project already the we we've that in on guidance add this have that nothing budget. to and We given on expect

the imminently So on going and the you mobilizing them staffing, you what in involved, being they're to equipment to the I can going arrive, say approvals to are light that's organizing, contractors, about have erect that need presume -- that all the people of granted?

Yes.

project previously little the and that a in-house. are this So this we've talked fact bit managing about we

we've -- packaged packages. we've got so And specific into work the

into for we've to welded or X into put lifted needs probably do So contracted It better kiln example, place to comes fabrication. in order parts. and supplier welded lifted to It a the is be -- and place particular that.

businesses. the of we're we allows this we're contractor because And competing local local managing a so stable And workforces. for And -- previously, in a those people and space way, engage oftentimes, where to to example, more same are have to able us workforce. they about that packages operating sort in this for construct tend we're if talked will and

are But the things is we're phase Kalgoorlie we we at are want always has been be the want Kalgoorlie this of on be like we economic part engaged construction of into driving for to of hard, community. we the with and that part project. also the community, the to of the why in options peak working and benefit reason So sort accommodation periods for workforce city very

So where we're possible, local using suppliers.

CapEx on I Kalgoorlie, on But that spent how cash so through how see much much been your can much -- you've spent far? has statements. And project flow cash how obviously

haven't for total lead we of long XX% long lead that equipment. XXX% orders disclosed have we've time our disclosed our our Well, placed But of time of and -- we that. equipment,

though you as like things about value, this, S on that. us, about So gives earned a -- our through bit cash. we we course, reason think on even we should or to we're a why people so curves we're there of of we And sort XX% see for any we look faster fast. like think if at it. the of way probably be think XX% We that moving don't of manage headline And money spending things things that

through it's one moving good at getting things sort of of are the we've the pace, development. again, We shown and photo. very once why a And we're reasons

understand this that understand and I not there's lot can whether we speculation. there's quite much about I -- speculation everyone So so I'm of a sure this. why do

middle have you doing doing things things, these as these do as we're just we We have tell to market I other are we're someone this produced changes And way projects. we progress that and briefing of we've and But what? have get we there a on do mean, its making guess them, the if the And And of to mean are And possibly we letting that of on as we're there's all was providing kiln you the budget on pandemic. all something the do and delivering the that our record a here. time on a that on them, that of things track we speculating It's I know that. time reaffirmed done and budget. it. we fact expect really projects you I would on no of could remember we in do way. sort

we think some I record So have track here.

environment think extending all I trends just the in necessarily is appreciate WA, seeing, we're I industry your questioning handling tough that them. And not of It's think. very that. I from a

the Just tack, just maybe rates. switching on operating

the Now It towards the like COVID a quarter with is et was that you cetera. improving logistics, quarter. on that had seems -- of and end tough

You said into that October. improved

the a through run if still wondering the the problem? Or is can Just year. you harder XX% than end logistics of

looking I Government in over at i.e., as The Malaysia alternate way you, it, it. a plant manage we Malaysia pandemic. our going to an our moved with be treating big on But can got is specific -- us will we're all confidence certainly than manage do we areas area. shipments any has more be of rather about the -- to living and logistics, to more That challenge the able and COVID, challenges a Malaysian tell be endemic But strategies to had it to disease able we're to related couple certainly, yes, this. operations virtually we're there. other than gives to that from Australia probably to

So we're mitigate up we're as -- on and we risks. confident alternate working strategies keen of those it. rates those keen production some can to dial that anybody do as to We're

of challenges, the our the which inputs -- we at sort the is time. all as getting those said, probably a one get major lot I of So feed right inputs, as site of which, long of of all just on and is

question, would license. date, end at of year year? I'm year, capacity does appear is, -- this mean, is to Yes. of unused allow Or year? Is to of And been loss you any the that full that wouldn't would is just Sure. use at I it the licensing your last wondering this which if lost that haven't, running you carry that, or that at what just over? somewhat a that calendar to that potential the end do, you related portion

pandemic year year. the have it residues productive we to them. produced, will that conversation a to a unusual relates agreed we the a that. over ultimately, given a some the with we But we because the have this could had that on regulators conversation can year. that quantities discussion further then And within carry We decision. their regulation with regulators regulators with have and But believe we We due an it's primarily of of that. conversation on with was last And the

next Our David from question from Deckelbaum comes Cowen.

caller rates So I'm same question the curious run asked about last on -- now.

some of in to global given I have the your better one cracking significantly. think logistics curious, of surrounding difficulty obtaining the of shipping -- COVID-related and to that leaching I'm alluded just constraint guess some the in at some but issues, around at the conditions uptime production inputs. that be plant, perhaps all get of processing of related Has the you staffing there it's also guess with chemicals improved that the and have thing but operating September the had some inputs of lowsI shutdowns, and would just just process? appears situation we're some abated I one ongoing to to trying still to a also it the sense is kind of associated necessary

to, the able additional question, for we've by Thanks we've mitigated been inventory. David. this building Where

the yearly. to picture. who carrying are cash mitigate we've to more and is a effects sort out And logistics want we stage some risk. The for that so And put shouldn't number be X up track of those truer cautiously but a we put we over, click half the to have this cash to the costs We'll as manage of as much where continue for are we costs that handicap -- sufficient it lingering. we've and there because a us But opposed inventory in mitigations certainly this bit. that just cost optimistic see a to times reasons it. place very a have challenges, and at inventory And and we picked when say pandemic its closely. we're heels our of provide unfortunately, yearly, increased And is way that's onshore sort for of why that inputs, one of

And about expansion might a the Understood. year of you of just then talked some or milestones a Kalgoorlie United about that perhaps 'XX? length for States, Indeed. some just Can evaluation around talking maybe sort a maybe process talk and at towards you bit just pivoting merit the bit into what about then expectations projects, XXXX the and the we just some going bit, of is how and look rest other Sure. there. of the

I lines give seems, that much are, in infinitely of sort tell I can. can't government would don't I work pleased saying, it I flexible. probably satisfaction. am time start by I -- Sure, you because

we material. at met submission And we as further said, milestones We've and I this, look for so provided our material.

that -- is I think merit the that we review know the ongoing.

And so U.S. some of there's tied up -- we that will and time expect that lines. the be determinations budget with

might our of give when quickly can't once other is to decision I sort time, this for than at confident mobilize decisions of milestone made of say pretty increasingly the ability made. we're unfortunately, So sort that now to be just you

Amanda. Understood. I answers, the appreciate

Thanks, Okay. from but government. able to been just that, definitive more determination sorry, enthusiastic from on of await I to sort -- give you the something the the We've group David. U.S. the can't I'm respectfully do be we'll

[Operator Instructions].

Our Shumatsu next [ph]. question Tom comes from

I've got two questions.

XXX% The to of caps at have first NEXT produce? terms production we with would in in -- NEXT regulatory of of how regards compliance Malaysia that can production we one's the in -- are rate, Lynas still XXX% much in

other of not one or -- the years actually couple Tom, minister no, is our processing concentrate. approval, the we've that of seeking the That's COVID. DoE. previously licenses go which And at once associated the One over NEXT, of of we effects we license. the are XXX% granted an operations. import is And because that separate were grounded levels those ministry, about uplift X to lost lanthanide by in we'll a but AELB. tested we've the license by the if with There talked is processing were last

be the rare of And be of through earth a we'll carbonate next end the year, so to Kalgoorlie. will that from little coming getting from start

at a the factor on don't constraining time. business actually we So this this as see

Okay.

go EPA -- was that if is the entire conditions the the yes... But of I now -- I a think the was noticed of I to there -- Okay. that approval in And sent that back opportunity right? had the Am is Mt BA. through recommended Weld. for haven't to And I approved one mention waste

from? I can Tom, you check? just are Where

Tokyo.

Right.

firm? Okay. which From

Bluebird.

Okay.

Bluebird Capital. Yes, Bluebird.

Thank Okay. you.

Yes. No problem. Yes.

So going going going or I or it from what in on it Is down to be your is Weld, right? impact to the expected in neutral? back if Kalgoorlie is And regards waste Mt sent the up would this processing it be cost? yes, move am to cash to to be side move the

it are Australia. in There -- to we material different there recommended costs a The to and loading the submitted some in are materials course, of go approval in stands costs being for have -- Mt which proposal there of some for effects from that variety EPA go consideration as operating Mt And Weld. backloading Weld. includes are from they So down. which up we're down which

we involved so I which backload is have think, the And work all well in a which opportunity -- process. for will, there,

We have no further questions.

hand I'll back comments. Amanda, closing So you to for

And you, our Terrific. who's speak further you. there and discussions or background, of more Strategy with everybody, sort anything directly be joining. we'll please for to Daniel, Okay. all. Thank is looking Thank don't that and like us after contact Relations, any people if hesitate to would you and -- pleased Investor

does all conference Thank conclude much. for you call. Thank so you This today's joining.

disconnect. now may You