PERTH (miningweekly.com) – The share price of ASX-listed Lynas tumbled more than 7% on Thursday after the company reported less-than-stellar interim results.

Despite a 9% increase in production volumes during the six months ended December, Lynas reported a fall in revenues from A$200.9-million reported in the previous corresponding period, to A$179.8-million.

Earnings before interest, taxes, depreciation and amortisation over the same period also fell by38.8%, from A$83-million to A$50.7-million, while net profits fell by 62.6%, from A$50.8-million to A$19-million.

Lynas told shareholders on Thursday that the interim financial results were affected by difficult regulatory conditions and subdued market conditions compared with the previous corresponding period. The company was also in production for only five months out of the six, due to equipment shutdowns in November associated with the NEXT project, and a temporary production halt in December.

Neodymium and praseodymium (NdPr) production volumes, however grew by 5% in the interim period to 2 802 t, with total rare earth oxide production up by 9% compared with the previous corresponding period, to 9 642 t. Sales volumes were also up by 5%, to 9 428 t.

Lynas CEO and MD Amanda Lacaze said that the interim results were "good", despite the company being faced with difficult regulatory and market conditions.

“Our team delivered several key milestones including record rare earth oxide sales volumes and production, despite only being in production for five months of the half-year.

“We proved Lynas NEXT production capacity by producing over 600 t of NdPr in September and again in October. We also produced and sold our first separated Nd product.

“On a run-rate basis, revenue was higher than in the prior corresponding period, even with the low NdPr market price,” Lacaze said.

Lynas’ Malaysian plant also underwent scrutiny from a government-appointed Review Committee in the period under review, with the committee in December finding that the operations were at low risk and compliant with applicable laws.

However, the Atomic Energy Licensing Board has issued the company with two new preconditions for its licence renewal relating to the management of two residues produced by the Malaysian operation.

While the company has developed an action plan for one of the residues, it has appealed the condition related to the second.

“Despite the various challenges in this first half, the production run rate was excellent and reflected the improvements delivered by the Lynas NEXT project. This provides a strong foundation for continued improvements in the second half of the year,” Lacaze added.