Lynas Reports AU$1.3 Million in Free Cash Flow for Quarter

Lynas Corporation Ltd. (ASX:LYC) released its results for the first quarter of its 2016 fiscal year, which ended on September 30, 2015. The company highlights in its release that it generated AU$1.3 million in free cash flow in the face of tough market conditions.
Highlights include:

• Positive free cashflow (revenue less operating costs and CAPEX) of A$1.3m despite very low market prices. This result reflects continued improvements in key business areas:
  • Production of ready for sales tonnes grew to 3171 tonnes of REO including 968 tonnes of NdPr
  • Cash receipts of A$55.9m
  • Cash Outflows of $54.6m below the forecast in the June Quarter Appendix 5B were achieved with improvements in recoveries at both facilities and continued close focus on cost management
• Announcement of new rescheduled debt agreements with both lender groups
• The completion of the new Resource and Reserves statement for Mt Weld announced on 5 October 2015, confirming the physical robustness and quality of the Mt Weld deposit
• Closing total cash balance of A$56.5m, A$4.5m above closing cash for Q4 FY15

The press release also states:

In FY15 we focused on improving the internal operations and capabilities of Lynas to create a solid foundation for further business growth. Lynas can now confidently present itself to the market as a reliable supplier of quality, environmentally assured products backed by supportive lenders.
In FY16 our strategic focus will be to work with participants through the Rare Earths supply chain to grow the total Rare Earths market and to create a strong differentiated position for Lynas products.

Click here to read the full Lynas Corporation Ltd. (ASX:LYC) press release.