Lynas lifts Malaysian plant output

Shares in Lynas Corporation firmed after more news pointing to improved performance of its Malaysian rare earths processing plant.

Lynas said it had lifted production at the plant by 47 per cent in the March quarter to 1089 tonnes of rare earths oxide and lifted shipments by 84 per cent quarter-on-quarter to 751 tonnes.

"The company is pleased to report that production reached 575 tonnes in the month of March, 62 per cent higher than the previous monthly record," Lynas said.

The company expects to produce 11,000 tonnes of rare earths oxide at the plant in the June quarter.

"The average selling price achieved for the quarter increased by 5 per cent to $US22.63 a kilogram," the company said.

Chief executive Eric Noyrez said the plant had demonstrated growth in production and sales volumes 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," he said.

Mr Noyrez also noted that at current prices, the company expected to be operating cashflow neutral at a monthly sales rate of about 750 tonnes of rare earths oxide.

Lynas shares were up 0.7 cents, or 3.33 per cent, to 21.7 cents at 9am after touching an earlier peak of 24 cents.

The West Australian

Popular videos

Our Picks

Compare & Save

Follow Us

More from The West