Lynas narrows half-year loss

PERTH (miningweekly.com) – Rare earths miner Lynas has narrowed its interim loss on the back of higher output and revenue.

Its pre-tax loss for the six months to December 31, improved to A$66.1-million, compared with a loss before tax of A$103.5-million in the previous corresponding period.

During the interim period under review, sales volumes grew by 62% to 5 773 t, reflecting an improvement in production rates, consistent demand for Lynas’s products and quality improvements for cerium and lanthanum product.

Revenue for the period also grew by 43%, to A$93.2-million.

Lynas noted that the lower revenue growth, compared with the volume growth, reflected the historically low rare-earth prices achieved during the period, with rare-earth prices remaining some $10/kg to $11/kg lower than average levels experienced in 2014 and early 2015.

“Despite these extremely challenging market conditions, the company believes that the underlying market dynamics remain favourable to Lynas and the work done to improve production and cost during this time will deliver a robust foundation for future success,” the company told shareholders.

Lynas added that further production increases and continuing tight control of costs would be essential to operate successfully in the current difficult market conditions.