Rare earths miner Lynas has released its yearly financial and operations update. Highlights include operational improvements and a gross profit of AU$12.1 million.
Rare earths miner Lynas (ASX:LYC,OTCMKTS:LYSDY) has released its yearly financial and operations update. Highlights include operational improvements and a gross profit of AU$12.1 million.
The Australian critical metals producer also reported significant balance sheet improvements, with increased cashflow from operating activities topping AU$118 million. 2018 also marks the first time Lynas had positive earnings before interest, tax, depreciation and amortization, reaching AU$121.9 million.
Year-over-year, company revenue grew from AU$257 million in 2017 to AU$374.1 million in 2018. The most significant growth however, came from the company’s gross profit. Last year, Lynas reported gross profit of AU$14.7 million, but this year that number climbed by more than AU$100 million, to AU$121.1 million.
CEO and managing director Amanda Lacaze credits the operational and financial growth to increased production and operational efficiency.
“This year we launched and made substantial progress on Lynas NEXT, our $35 million capacity building project,” Lacaze said in the press release. “Thanks to our skilled and dedicated team, Lynas NEXT improvements have been delivered alongside uplifts in production volumes at our mine in Mt Weld and our world-class processing plant in Kuantan.”
Currently, Lynas operates Mt Weld, considered to be among one of the world’s highest grade rare earths mines, as well as the Mt Weld concentration plant, which was commissioned in 2011. Both Mt Weld and the concentration plant are located near Laverton, in Western Australia.
Outside of Australia, the rare earth developer operates the Malaysian Lynas Advanced Materials Plant, comprised of an integrated manufacturing facility designed for separating and processing rare earths materials.
Aside from increased revenues and profits, production was also improved. Rare earth oxide production grew by 1,750 tonnes, from 16,003 in 2017 to 17,753 this year. Neodymium-praseodymium (NdPr) production was also slightly up. Last year, the company produced 5,223 tonnes, that total grew to 5,444 tonnes in 2018.
Adding to the report’s findings, Lacaze noted, “this result is the culmination of four years of intense focus on operational excellence and customer development. During the 2018 financial year, we increased production, strengthened our portfolio of customers in key markets, achieved record sales, and our group debt reduced by 61 percent.”
Going into the next fiscal year, Lynas asserts it is on track to produce 600 tonnes a month of NdPr. The company will need to acquire regulatory approvals to produce the higher output volumes.
Lynas shares remained flat on Thursday (September 6), tradingat AU$1.88.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.