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Lynas posts record quarterly output, sales

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Lynas posts record quarterly output, sales

said July 18that it booked record quarterly output and sales in the fourth quarter of itsfiscal year 2016, pushing its annual figures to beat that of the preceding12-month period.

The companyproduced a record 3,727 tonnes of rare earth oxides in the quarter ended June30, with neodymium-praseodymium oxide output reaching 1,150 tonnes from 846tonnes in the previous quarter. Sales volume also peaked at a record 3,806tonnes of rare earth oxides, raking in total revenues of A$55.9 millioncompared to revenues of A$44.5 million in the third quarter.

Lynasattributed the record figures to increased production volumes and its strongrelationship with strategic customers in Japan and China, though prices haveremained low.

Meanwhile,production costs rose slightly in the quarter to A$42.9 million from A$42.5million in the preceding three-month period. CapEx stood at A$1.1 millioncompared to A$3 million in the last quarter.

For thefull year, the company's output increased to 12,630 tonnes of rare earth oxidefrom 8,799 tonnes in fiscal year 2015. Sales volume also improved to 12,513tonnes of rare earth oxide, yielding sales revenues of A$196.1 million. Lynas'sales volume and revenues were both lower in the previous year at 7,883 tonnesof rare earth oxide and A$148.6 million, respectively.

Annual NdProutput stood at 3,897 tonnes from the 2,258 tonnes produced a year ago,exceeding the target agreed with Japan Australia Rare Earths BV, or JARE. As aresult, the interest rate payable on the JARE senior loan facility will reducedto 6% per annum and will be reduced further to 5.7% following the company'sUS$2 million repayment, reducing the loan balance to US$203 million.

The JAREfacility's interest rate was cutto 6.5% in January after Lynas exceeded its target NdPr production in the firsthalf of the fiscal year.