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Lynas lifts revenue as production surges

‘Strong foundations.” Lynas CEO Amanda Lacaze.

• DANIEL PALMER
• The Australian
• 9:05AM JULY 18,

Rare earths miner Lynas has reported record quarterly sales in the fourth quarter as higher production offset continued low prices.

The ASX-listed group (LYC) said total tonnes had jumped 30 per cent in the fourth quarter, pushing gross sales revenue up 27 per cent from $44.5 million to $55.9m.

The record number helped drive a lift in full-year sales to $196.1m, from $148.6m a year earlier.

“The results achieved this quarter, and for the year, reflect the sustained improvements in business operations delivered over the past two years which have created the strong foundations on which Lynas now operates,” Lynas chief executive Amanda Lacaze said.

“This record sales result reflects increased production volumes and continuing strong relationships with strategic customers in Japan and China.”

Lynas said it produced 1,150 tonnes of neodymium and praseodymium (NdPr) during the quarter and 3,897 tonnes over the year to June 30, up from 846 tonnes and 2,258 tonnes, respectively.

In May and June the group recorded 400 tonnes of production, a rate at which production will not stabilise for the next six months, Ms Lacaze said, before any further increases are recorded.

“This significant production growth and operational improvement caps off a two-year trend of positive improvements in the production process, throughput rates and quality of final output.”

Lynas warned prices remained weak, however, with no signs of any sustainable recovery.

“Prices have remained low,” Ms Lacaze said.

“A small upward trend in the NdPr market price early in this quarter has not been sustained.”

Lynas shares last traded at 8c, down 20 per cent from the start of the year and well shy of their 2011 peak of $2.55.