PERTH (miningweekly.com) – Despite low commodity prices, rare earths miner Lynas has achieved a strong first financial quarter.
The ASX-listed company reported on Wednesday that stable production output, consistently high-quality end-product and efficient cost and cash management had been key contributors to the company generating A$1.3-million in free cash flow for the three months to September 30, despite rare-earth prices dropping to historic lows.
Lynas produced 3 171 t of ready-for-sale rare earths during the quarter, which was in line with guidance, and included 968 t of neodymium praseodymium. With production now stable, Lynas had focused on the quality of its cerium and lanthanum products and had made strides in improving quality output.
This, the company said, would allow Lynas to serve new customers with higher-quality specifications.
The company sold 2 691 t of rare-earth oxides in the three months under review, compared with the 2 353 t sold in the previous quarter. Sales revenue for the quarter reached A$46.2-million, down from the A$51.9-million achieved in the previous quarter.
Meanwhile, recovery rates improved at both the Mt Weld and Lynas Advanced Materials Plant, in Malaysia, and, along with the increased throughput, led to a reduced unit cost of production.
Lynas said that continuing to reduce the cost of production was essential to mitigating the effects of the current low market prices.