PERTH (miningweekly.com) – Rare earths miner Lynas has widened its loss for the full year by some 43%, despite reporting its first revenue from the sales of rare earth oxide products following the commissioning and start of the Advanced Materials Plant (Lamp) in Malaysia.

Loss for the year ended June 30 increased by A$38.3-million to A$128.4-million.

Lynas said that the loss reflected reduced production from the Mount Weld operation, owing to a planned shutdown and the tie-in of the Phase 2 expansion that resulted in production costs of some A$16.5-million during the period not being captured or capitalised to inventory.

The group’s results were also impacted by A$20.7-million in charges relating to non-cancellable take or pay obligations, and impairment charges of some A$9.1-million from the valuation of certain inventory items, as well as a A$3.4-million impairment charge on property plant and equipment.

During the 12 months, a maiden revenue of A$0.9-million was achieved from the sale of rare-earth oxides produced at Lamp, which Lynas said was a clear step forward in the group achieving its core objective of becoming a leading sustainable supplier of rare earth materials to the market.

There has also been a 41% increase in inventory, to some A$92.9-million at the end of the financial year, which reflected the production ramp-up at Lamp. At the end of the financial year, Lynas had 15 865 t of processed concentrate and 343 533 t of unprocessed ore at its Mount Weld operations, which would be used over the next 12 and 24 months, respectively.

Meanwhile, Lynas on Monday also announced that it had amended the terms of a $225-million loan facility with Sojitz Corporation and Japan Oil, Gas and Metals National Corporation.

The key amendments deferred a Lamp production milestone and cash operating margins from January next year to March 2015. The amendments were made on the back of the subdued global rare earths demand and the delays to the start-up of the Lamp.