- Lynas Corporation (LYC) has delivered a positive report for the December quarter, despite constrained production
- Production was dialled back for both the September and December quarter in order to remain within regulatory limits
- Lynas Malaysia applied for an uplift to the lanthanide concentrate processing limit for the 2019 calendar year but it was not approved
- Malaysian production limits have now been reset and Lynas has ramped up production again
- Regardless, the company’s average selling price for rare earth oxide increased over the quarter
- Furthermore, Lynas named Kalgoorlie as the site for its new processing plant
- Shares in Lynas closed 0.85 per cent higher, worth $2.34 each at market close
Lynas Corporation (LYC) has delivered a positive report for the December quarter, despite constrained production.
Production was dialled back for both the September and December quarter in order to remain within regulatory limits.
Lynas Malaysia applied for an uplift to the lanthanide concentrate processing limit for the 2019 calendar year but it was not approved.
The company’s total Rare Earth Oxide (REO) production over the quarter was 3592 tonnes, compared to 3926 tonnes in the previous quarter.
Malaysian production limits were reset as of January 1 2020 and Lynas has ramped up production again.
Nevertheless, the reduced production was compensated for in part by the increased average sale price for the company’s REO from $23.7 per kilogram in the previous quarter to $24.5 in December quarter.
The increase was mostly thanks to higher prices for mixed heavy rare earth, lanthanum and cerium products.
Lynas’ closing cash balance for the quarter was $111.8 million, down $7.3 million on the opening balance.
In December, Lynas also announced Kalgoorlie to be the location of its new processing plant. Shortly after, the Western Australian government granted the plant lead agency status.
Shares in Lynas gained 0.85 per cent and were worth $2.34 each at market close.