Forbes Asia — December 2017

Down to Earth

F

ew companies come back from a 99% plunge in their

share price, but that’s what an Australian rare-earths

miner and chemical processor has done—thanks

to the electric-car revolution and an environmental

cleanup in China.

Lynas Corp. was a highflier six years ago as strong demand

and tight supplies lifted prices for the unusual metals it pro-

duces, such as praseodymium and neodymium—they’re used

to make high-strength magnets and other products essential

for a range of technologies. But from a market capitalization on

the Australian stock exchange of $3 billion in 2011, Lynas’ value

plunged to $3 million in 2015. It was only a penny stock, worth

just 2.3 Australian cents a share. High debt, problems building

its processing plant in Malaysia and tumbling prices for rare

earths had driven the company to the brink of collapse.

Tightly controlled rare-earths production in China, the

world’s major source of the odd elements, coupled with export

restrictions, had driven prices sharply higher in 2011. But after

the price boom came a rare-earths flood and a price crash.

The only U.S. rare-earths company, Molycorp, went bankrupt

in 2015. Lynas, a former gold miner, somehow survived, and

today it’s enjoying a rerun of the rare-earths shortage as China’s

tougher pollution laws and the growing popularity of electric

cars are boosting prices.

For Lynas Chief Executive Amanda Lacaze, the road back

has been rocky, with her first job being to stabilize the business

and satisfy creditors while ensuring that the Malaysia plant was

able to meet customers’ demanding specifications. She laid off

much of the headquarters staff in Sydney and moved the rest

and herself to Malaysia. Only in the past 12 months has the

mood at Lynas started to reflect the rising prices for rare earths.

Indeed, the price of its most basic product, a mix of praseo-

dymium and neodymium that is marketed as NdPr, has risen

from around $40 a kilogram in September of last year to more

than $90 a kilogram now.

That rise, coupled with record rates of production, enabled

Lynas to lift its revenue from $139 million in the 2016 fiscal

year to $194 million in the year ended June 30 and cut a $68.5

million loss to $11.2 million. That trend accelerated in the

quarter ended in September, with sales reaching a record $88

million, up 108% from the same quarter last year. “It was our

first champagne quarter,” says Lacaze. “Revenue, production

and cash flow from operations all reached record levels. In

addition, we recorded significant improvements to our balance

sheet.”

The straight-talking Melbourne-born Lacaze, 57, who lives

with her husband near the company’s plant outside of Kuantan

in east Malaysia, is quick to advise against seeing Lynas as a

miner. “We are a specialty chemical company,” she says. “We

just happen to mine the raw material we need for the produc-

tion of a range of unique products.”

It’s rare for a woman to lead a chemical or mining compa-

ny—Australia’s richest person, iron ore queen Gina Rinehart, is

another exception—but it’s probably more unusual that Lacaze’s

background isn’t in chemicals or mining. Her career has been

spent mostly in marketing with companies such as Nestlé

FORBES ASIA

REBOUND

After a near-death experience, Lynas Corp. hired a telecom marketing executive,

Amanda Lacaze, to turn around the Australian miner and chemical processor.

BY TIM TREADGOLD

30 | FORBES ASIA DECEMBER 2017