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Lynas Corporation Posts Positive Cash Flow for March Quarter

Lynas Corporation Posts Positive Cash Flow for March Quarter
Apr 24, 2015

Rare earths miner Lynas Corporation (ASX:LYC) achieved positive cash flow for the first time since 2011, according to its Cash Flow Report released on Friday. Lynas, and its US-competitor Molycorp, are the only rare earths miner outside of China currently. The Australian based miner has been facing headwinds since its inception into the rare earths market in 2011. The company’s total output during the quarter was 1,973 tonnes, down from 2,177 tonnes from 4Q2014. Despite the drop in production, the miner announced that operating conditions had improved significantly. “Based on recent performance, the business currently expects to continue to deliver positive free cash flow," the company said in a statement. "Work on a series of commercial initiatives, including customer-relationship development, cost reduction and balance-sheet management, continued to build a solid foundation for future success.”

 Lynas also beat saving expectations by 34.6, bringing its annualised savings to $35m.  The company posted a positive cash flow of $191,000 in March. This is compared to the current $430m in debt that the miner holds. Despite the positive cash flow, the report cited a “difficult quarter” after it attempted to recover from technical difficulties such as process equipment breakdowns. Lynas also recently cut jobs and shifted its headquarters to Malaysia in an effort to cut costs. Its assets in Malaysia’s Pahang state began operations in late 2012. Shares of LYC are up .4c, or 9.10 per cent, at 4.8c per share near the end of trading hours on Friday. LYC is down over 74 per cent in the last 12 months and over 29 per cent so far this year.

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