PERTH (miningweekly.com) – Rare earths miner Lynas on Friday reported a 79.6% fall in net profits for the first half of 2020, while earnings before interest, taxes, depreciation and amortization (Ebitda) fell 13%.
Net profit after tax for the six month ending December reached A$3.8-million, compared with the A$19-million in the previous corresponding period, while Ebitda decreasing from A$50.7-million to A$44.2-million.
“This is a solid result given the difficult regulatory and market conditions we faced during the period,” said Lynas CEO and MD Amanda Lacaze.
“Improved portfolio pricing and reduced costs helped to compensate for the weak market pricing. Despite this, the team continued to meet the strong demand for neodymium and praseodymium (NdPr) from key customers, particularly in Japan.”
Total rare earth oxide sales volumes for the first half of 2020 declined to 7 693 t, from the 9 418 t sold in the previous corresponding period, while NdPr volumes declined slightly from 2 893 t to 2 710 t.
Sales revenue for the period was up slightly from A$179.8-million to A$180.1-million, as the average selling price increased from A$19.10/kg to A$23.40/kg. While the NdPr market price decreased over the half-year, it was offset by higher prices for mixed heavy rare earth products and for lanthanum and cerium products.
Lacaze on Friday said that a number of initiatives were implemented during the half-year to improve efficiencies across Lynas’ operations, including the management of ore from Mining Campaign 3, new circuit and treatment controls at the Mt Weld operation, and improvements to cracking and leaching in Kuantan.
In addition, the company’s NEXT initiatives also contributed to improved recovery, particularly towards the end of the period, and it was expected that these improvements would be sustained.
“At the same time, we made significant progress on the Lynas 2025 plan which will see the diversification of our industrial footprint. In December we announced that Lynas has signed an option on a site in Kalgoorlie for the new Western Australian processing plant.
“The project was subsequently awarded Lead Agency status by the government of Western Australia and Major Project status by the Australian government, both of which recognize its strategic significance to the Australian and Western Australian economies.
“During the period we also submitted a compliant tender to the US Department of Defence for a heavy rare earths separation plant in the US.”
Subsequent to the end of the period, Lynas has also been awarded a three-year renewal for its operating licence in Malaysia, allowing the company to operate its Lynas Advanced Materials Plant project until March 2023.