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"Rare earth" metals, a family of minerals vital to producing the powerful, lightweight magnets

Neo Material Technologies reported a third-quarter profit that beat market expectations helped by higher rare earth prices, but said it expects prices and volumes to ease off recent peaks.

The company, which produces rare earth magnetic powders, posted net income attributable to equity holders of $78.9-million (U.S.), or 57 cents a share, up from $15.2-million, or 13 cents a share, a year ago.

Analysts on average were expecting earnings of 51 cents a share, on revenue of $216.2-million, according to Thomson Reuters I/B/E/S.

Revenue more than doubled to $248-million from $91-million in the year-earlier period, as the prices of the individual rare earth oxides and metals hit peak levels.

Rare earths are used in a variety of technology items like Apple's iPhone and Toyota's Prius. Prices for the group of 17 metals have soared over the last two years as China, which produces 95 per cent of the global supply, has repeatedly clamped down on export quotas.

Shares of the Toronto-based Neo Material, which owns processing facilities in China, closed at $8.20 (CAN) on Wednesday on the Toronto Stock Exchange.

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