Join our daily newsletter At The Bell to receive exclusive market insights
- Lynas Corporation (LYC) has released its Q1 FY21 report, showing the company started the financial year with strong sales and production rates
- The rare earth miner reported invoiced sales revenue of $87 million over the September quarter, up from $38 million in the previous quarter
- Lynas also produced a total of 4,110 tonnes of Rare Earth Oxides (REO) during the period, compared to just 2,579 tonnes in Q4 FY20
- The ASX-200 company became cash-flow positive by the end of September and had a closing cash balance of $522 million
- LYC boosted its balance sheet by carrying out a successful $425 million equity raise during the July to September period
- It also signed key agreements with the City of Kalgoorlie Boulder and the U.S. Department of Defence
- Shares in LYC are trading up 4.18 per cent at $2.99 a share
Rare earth miner Lynas Corporation (LYC) has released its Q1 FY21 report, showing the company started the financial year off strong.
The Results
Lynas recorded increases in both sales, revenue and production rates during the three months to September 30.
It’s invoiced sales revenue for the September quarter totalled $87 million, up from $38 million in the previous quarter.
The company sold 4,499 tonnes of Rare Earth Oxides (REO) during the period, with sales receipts totalling $72 million — an increase from the previous quarter’s $42 million.
At the end of the quarter, the ASX-200 lister had a cash balance of $522 million and was cashflow positive.
The rare earth miner also further strengthened its balance sheet via a successful $425 million equity raise during the July to September period.
In terms of production, Lynas managed to produce 4,110 tonnes of REO during the quarter — despite the impacts COVID-19 is having on Lynas Malaysia and Mt Weld.
This includes 1,342 tonnes of NdPr, compared to 775 tonnes in Q4 FY20, which Lynas said is a sufficient amount to meet demand.
The Activities
The rare earth company signed a number of key agreements during the September quarter as well.
These include a sub-lease deal with the City of Kalgoorlie Boulder for the industrial-zoned site selected for its Kalgoorlie Rare Earth Processing Facility.
Lynas also obtained a General Purpose Lease under the Mining Act and locked in a kiln for the facility.
In addition, the company signed a contract with the U.S. Department of Defense in relation to work on a U.S. based Heavy Rare Earth separation facility.
If the facility goes ahead, it would be the only source of separated Heavy Rare Earths Material outside of China.
Shares in LYC are trading up 4.18 per cent at $2.99 a share at 1:51 pm AEDT.
