Production of neodymium praseodymium (NdPr) from the Lynas Advanced Materials Plant (LAMP) was 1442 tonnes was up 7.4% on the previous quarter, with NdPr production in excess of 500t per month in two out of the three months.
Producing 500tpm on a consistent basis is considered an important next milestone for the company, and would be 14% above original nameplate design.
Total REO production at 4665t was an increase of 14% on the previous quarter.
The company described the quarter as “excellent” with significant improvements on all key measures of operating performance with revenue, production and cashflow from operations reaching new record levels.
Costs were steady and in line with forecasts despite the higher production levels.
Total forecast cash outflow for the quarter was A$63 million, of which $44 million was related to production. Cash in was $88.4 million from sales, up from $75.5 million.
Sales invoiced for the quarter were $112 million, allowing the company the confidence to make two US$15 million principal repayments on its JARE facility in August and October, reducing its debt to JARE to $170 million.
Debts were further reduced with the conversion of US$108.5 million of the convertible bond facility into equity, reducing the bond facility to $116.5 million,
Total debts are now $301.5 million and interest rates have also increased across both facilities due to higher product prices triggering clauses in both agreements.
Cash on hand was A$58.4 million at the end of the quarter, and is set to reduce with a further US$15.58 million due to the Malaysian Atomic Energy Licencing Board by the end of the year in two final bond payments to reach $50 million.
At the Mount Weld minesite in Western Australia a new campaign is underway to extend the original pit to the north.
Lynas said it was seeing strengthening of the business and markets for its products, and it was increasingly shifting its focus towards sustaining returns, with the expectation it will maintain the target 500tpm rate consistently from early 2018.
Debottlenecking remains a focus at the LAMP.
A 12-day shutdown is planned for November, but overall production is expected to be steady for the December quarter.
Lynas shares were steady at 22c this morning.
