Lynas Rare Earths announced on Tuesday that its quarterly revenue has dropped mainly due to a production decline at its Kalgoorlie plant in Western Australia and a drop in base prices, causing its share price to hit its lowest point in three months.
The rare earth miner's share price fell by 2.8% to AUD 5.880 per share, the lowest level since April 11.
During the reporting period, Lynas' operations in Malaysia also underwent maintenance shutdowns for over a month.
For the fourth quarter ending June 30, Lynas' total rare earth oxide production amounted to 2,188 tonnes, a year-on-year decline of more than 50%.
Lynas stated: "A major bearing failure in one of the kilns at our downstream Malaysian operations required a maintenance shutdown of over a month."
Weak demand from green energy companies and electric vehicle manufacturers, combined with increased global supply, severely impacted the prices of rare earth products.
Jefferies analysts wrote in a report: "The rare earth market continues to be affected by weak demand in China and high inventory levels... no short-term price support is visible at the moment."
Despite improved domestic end-product demand in China, Lynas noted that market prices remain sluggish.
The company reported that the average selling price this quarter was AUD 42.3 per kilogram, compared to AUD 43.5 per kilogram in the same period last year.
