Lynas up on positive free cashflow
Shares in Lynas Corporation kicked up after the company announced its first quarter of positive free cashflow.
The mineral sands miner and processor said it posted $191,000 in revenue, less operating costs and capex, in the March quarter, which it described as a first in its history.
And Lynas said it expected to continue to deliver positive free cashflow, based on recent performance.
The company said its cost reduction initiatives had achieved more than $35 million in annualised savings.
"With many of the cost management actions in place, improved engagement with key customers and much tighter controls on all management aspects, Lynas is now well placed to benefit from continued improvements in production output and any upward movements in price and demand," Lynas said in a statement.
Last month, Lynas recorded a first-half loss of $103.5 million to December 31, after a $59.3 million half-year loss a year ago.
Rare earths prices have been soft in recent months as supply has increased and high-tech product users have become more efficient and found alternative sources to deal with China's stranglehold on world production.
Lynas has also struggled to ramp up production and make its Malaysian refinery profitable.
Shares in the company were up 0.6 cents, or 13.64 per cent, to five cents at 9.45am.
