Lynas soars on record production

Shares lift as miner reports quarterly production and sales in line with guidance.

Lynas Corporation shares have soared after it reported a lift in production and sales in the March quarter to record levels and says it is on track to increase its run rate in the June quarter.

At 10.25am (AEDT), Lynas shares were 8.33% higher at 22.75c, against a benchmark index fall of 0.4%.

In the three months to March, Lynas produced 1,089 tonnes of rare earth oxides, a new record and a 47% lift on the prior quarter.

Sales also hit a record of 751 tonnes of rare earth oxides produced in the quarter, an 84% lift on the prior quarter.

The average selling price increased by 5% to $US22.63 per kilogram in the quarter.

The results are in line with previous guidance.

Lynas said it is confident of achieving the targeted production run rate of 11,000 tonnes per annum on a sustainable basis during the June quarter.

At current prices, the group expects to be operating cash flow neutral at a monthly sales rate of around 750 tonnes of rare earth oxides.

Lynas CEO Eric Noyrez said the Lynas Advanced Materials Plant in Malaysia has now demonstrated production and sales growth for four consecutive quarters.

"This improved performance reflects greater consistency and reliability of materials flow through the plant, and we are now building considerable production momentum," Mr Noyrez said.

"Organisation and personnel changes in the areas of shift supervision, repairs and maintenance procedures and modifications to process automation all underpin the improved performance.

"We will continue to seek areas where there may be opportunities for further improvement and cost efficiencies."

Lynas will provide further updates in its March quarterly activities report later this month.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles