Rare earths miner Lynas Corporation’s $500 million WA processing plant has moved a step closer with the company announcing that it has awarded the contract for its key part - the massive kiln which will be used to heat the ore to start the extraction process.
Boron really is a wonder element and as the appreciation for its advantages and applications increase, so will the search for the future players in this industry. We have seen with PPK how quickly the market can be excited by a boron application and ABR is the cheap and forgotten future source of all this excitement.
Revenue was 6% of ahead of UBS estimates in the December quarter. The broker likes the company's strategic position as the only producer of rare earths outside of China, for which demand is set to double by 2025.
Higher than expected one-off costs led Lynas to report a loss of $32m in the first half, compared to the broker’s $16m loss forecast. Free cash flow was in line with expectation. No production guidance was offered.
Macquarie has reviewed forecasts following the first half result. Despite progress at the LAMP during the first half, Macquarie notes output has not yet reached Phase 1 capacity as operational issues delay the plant ramp up. A period of steady-state production is required to gain confidence and deliver a consistent revenue stream.