Highlights  The Group achieved record total gross sales revenue...

Highlights

 The Group achieved record total gross sales revenue in FY16 of A$196.1m, compared with A$148.6m in FY15, reflecting increased production volumes and continuing strong relationships with strategic customers in Japan and China.

 For FY16, 3,897 tonnes of neodymium-praseodymium (NdPr) was produced (FY15: 2,258 tonnes) and total rare earth oxide (REO) production was 12,630 tonnes (FY15: 8,799 tonnes), reflecting a continuing trend of positive improvements in the production process, throughput rates and quality of final output.

 Costs remained well managed throughout the year, with general and administration expenses excluding depreciation of A$22.8m, compared to A$28.4m in FY15, despite increased production in FY16. Capital expenditure was A$10.7m compared to A$10.0m last year.

 During the year the Group successfully negotiated the extension of both of its debt facilities until June 30, 2018, reflecting the support of both lender groups during the year.

 During the March quarter, the Group increased the operating capacity of the Lynas Advanced Materials Plant (LAMP) by commissioning the fourth and final NdPr separation train in SX5.

 Although the rare earth market remained challenging throughout the year, Lynas retained strong support from the strategic relationships it has developed with customers, which are leaders in their own market segments in Japan, China and Europe.

 The Group-wide 12-month rolling Lost Time Injury Frequency Rate, as at the end of June 30, 2016 was 0.5 per million hours worked.

As outlined in ASX announcements dated January 6, 2016 and July 6, 2016, the Group exceeded each NdPr production target agreed with JARE for FY16. In addition, USD2m was repaid on the JARE facility prior to June 30, 2016 reducing the outstanding loan balance from USD205m to USD203m. As a consequence of achieving these milestones, the interest rate for the JARE facility is now 5.7% per annum, a reduction of 1.3% compared to the rate at the beginning of FY16.


Still waiting for RE prices to pick up obviously, how much longer will the creditors give the company...? I guess im waiting for the announcement that reads: "the company has paid down $50m of debt this FY..."