Lynas back in business after coronavirus impacted June quarter

A DISJOINTED quarter has been endued by rare earths major Lynas Corp after operations in Malaysia were shut down for 44 days as per directives issued to businesses by the Malaysian government in response to the COVID-19 pandemic.
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Lynas' Mt Weld mine in WA

The closure in Malaysia subsequently saw the company's Mt Weld mine in Western Australia also idled down to closure after inventory levels at the site hit maximum target levels.

Both operations have restarted at 70% capacity of Lynas' Malaysian plant.

Regarding rare earths' markets, Lynas suggested future price trends will depend on future end product demand (in particular in the automotive industry).

"It may take a few quarters to clarify the effects on demand, including the effects of government economic policies and possible regulatory developments," Lynas said.

On the financial front, quarter-on-quarter cash declined to A$102 million from $125 million.

Shares in Lynas were little changed in afternoon trade at $2.09, capitalising the company at $1.46 billion.

The stock fell to about half that price during height of the COVID-19 induced panic selling in March.