Western Australian rare earths company Lynas Corp has reported positive results in its quarterly report via the Australian Securities Exchange (ASX).
Overall debts were reduced from $US256.5 million ($329.4 million) to $US185.2 million ($238 million) for the March 2018 quarter. The company also reported positive cash flow of $3.9 million from operational activities (including capex), and substantial progress achieved on the Lynas NEXT initiative, which is primarily focused on the company’s growth in production capacity.
The report cites an increased frequency of meetings with “participants in the energy, automotive and electronic sectors” in order to discuss the Lynas business model, particularly with regards to its neodymium and praseodymium production.
Less positively, sales revenue slipped from December to March, dropping $7.9 million from $93 million to $85.1 million.
However, the $85.1 million figure for the company’s third quarter of the 2018 financial year (Q3 FY18) did mark a $15.8 million increase over the same quarter in the previous financial year (Q3 FY17), where the company reported sales revenue of $69.3 million. The company’s closing cash balance at the end of the quarter was $52.9 million.
It also spent considerable resources on improvements at the Mt Weld central lanthanide deposit (CLD) and associated Lynas Advanced Material Plant (LAMP) in WA as part of the above-mentioned NEXT initiative; improvements made during the quarter included upgrading the ball mill; pilot flotation testing for higher recovery; modifications to concentrate thickener and filter; and modifications to water recycling.
LAMP also saw several upgrades, most significantly modification of extraction circuits to separate lanthanum and cerium.