Shareholders have reacted well to the latest piece of Lynas news. The Aussie rare earths miner increased its gross sales revenue by 74 percent quarter-on-quarter to hit AU$51.9 million, a record high.
At the end of 2013, some were wondering whether 2014 might be the year China would start to loosen its grip on the rare earths market. But although there are signs its monopoly is slipping, the country still definitely produces the lion’s share of the world’s rare earths.
The share price of Australia’s Lynas Corporation is down 75 percent year-to-date, so investors were no doubt happy to see some positive news in the company’s first-quarter results. But although Lynas reported a respectable increase in both revenues and production, also decreasing its operating costs, it’s still facing some struggles.
Lynas Corporation Ltd. (ASX:LYC) announced that the Malaysian Atomic Energy Licensing Board (AELB) has issued a Full Operating Stage License for its Lynas Advanced Materials Plant (LAMP).
Yesterday, Lynas Corporation Ltd. (ASX:LYC) released its quarterly report for Q1 2014, commenting that management is “confident” that the Lynas Advanced Materials Plant (LAMP) will reach its targeted production run rate of 11,000 tonnes per year “on sustainable basis” during the June quarter.
Mining Weekly reported that yesterday, shares of Lynas Corporation Ltd. (ASX:LYC) jumped 25 percent on the news that the company expects its Lynas Advanced Materials Plant (LAMP) to hit production and sales volume records in both March and the first quarter of this year.
Mining Weekly reported that Lynas is undertaking aggressive cost cutting measure to remain competitive as rare earth prices weaken.
While China’s Rare Earths Global announced that it will not meet its 2012 profit expectations, Lynas Corporation and Great Western Minerals both put out good news this past week.
Lynas Corporation recently announced the successful commissioning of the cracking and leaching extraction units at its Malaysian facility, but ongoing protests and scathing environmental reports are hindering progress.
The future of Lynas Corporation seems brighter as rare earth prices strengthen and the company makes headway in its battle to begin operations at its Malaysian plant.
Investor focus shifted to Lynas Corporation after it received confirmation that its controversial rare earths plant in Malaysia has won a temporary operating license from the country’s Atomic Energy Licensing Board.
IBTimes reported that Lynas Corp.’s (ASX:LYC) rare earth plant in Malaysia could provide an important economic boost, according to the country’s trade minister.
Following months of negative media exposure, Lynas Corporation is fighting back against what it calls unfounded criticism.