quarterly

"Production and sales in the December quarter increased versus the prior quarter reflecting the progressive completion of work programs in the cracking and leaching units of the Lynas Advanced Materials Plant (LAMP). Total tonnes produced for the quarter were 741 tonnes, on an REO equivalent basis, a near three-fold increase on the prior quarter. Total tonnes shipped were 409 tonnes, on an REO equivalent basis, up 87% on the prior quarter. The difference in production and shipments largely relates to the timing of sales at the end of the quarter. In addition, the cerium and lanthanum borrowed in 2012 for the pre-seeding of the LAMP was produced and largely returned by the end of the quarter.
? The average selling price decreased by 5% to US$21.48/kg REO (revenue basis), from US$22.70/kg REO (revenue basis) in the prior quarter. This reflected the sales mix in the December quarter containing a higher proportion of cerium sales than the prior quarter. The “basket price” averaged US$22.62/kg on a China domestic basis during the December quarter.
? Subsequent to the end of the quarter, some temporary interruptions occurred in the product finishing areas of the LAMP. Product flow through certain process tanks was disrupted and one electrical control unit had an outage. Changes have been made to address these issues. As a result of these changes, the Company does not expect any recurrence. The Company expects production levels in the March quarter to increase above production levels in the December quarter. While the Company remains focused on producing 11,000tpa REO from Phase 1, there may be a delay in achieving that run rate until the June quarter."