PERTH (miningweekly.com) – Rare earths miner Lynas has reported a significant increase in its net profits and revenues for the half-year ended December, with record sales achieved in the December quarter.
The ASX-listed miner on Friday reported that net profits for the interim period increased to A$40.6-million, up from the A$3.9-million reported in the first half of the 2020 financial year.
Revenue for the interim period also increased from A$180.1-million to A$202.5-million compared with the previous corresponding period, while earnings before interest, taxes, depreciation and amortization increased from A$44.2-million to A$80.6-million.
Sales volumes in the first half of the 2021 financial year increased to 8 551 t, compared with the 7 693 t of rare earth oxides sold in the previous corresponding period, with Lynas reporting record quarter sales in the three months to December.
“This half-year demonstrated our ability to achieve strong results across all key financial metrics, while running production at 75% of the Lynas NEXT rates, “ said MD and CEO Amanda Lacaze.
“Despite ongoing uncertainty in the global economy and logistics/supply chain system due to the effects of the pandemic, rare earth market settings were favourable and pricing for rare earth materials improved. We demonstrated our ability to capitalise on this upside during the period, with cost of sales maintained at A$150.8-million while achieving an increase in sales revenue to A$202.5-million.”
Lacaze noted that progress on the Lynas 2025 projects continued during the interim period, with a number of milestones achieved and critical path items secured for the Kalgoorlie facility during this time.
Phase 1 planning for the US heavy rare earths separation facility also continued, and the Phase 1 work will be completed in the 2021 financial year.
“Lynas has a unique position in an exciting market. We are the second largest producer of separated rare earths in the world and have a proven track record in developing and operating our production assets,” said Lacaze.
“Our team remains absolutely focused on serving our long-term strategic customers with high quality products and on contributing to the development of a sustainable rare earths supply chain outside of China.”