Lynas doubles year’s revenue

RARE minerals group Lynas has more than doubled its full-year revenue as its production rapidly increases.

The company mines metals, used in many hitech products, in Western Australia and operates a refinery in Malaysia.

Lynas notched up sales of $148.6 million in the year to June, up from $66.2 million the previous year, with production more than doubling.

The company said prices for rare earths products were still at a cyclical low, and it would focus on reducing the cost of production.

Shares in Lynas closed 2.63 per cent higher at 3.9¢. FALLING oil prices have offset a ramp-up in production by energy group Santos, causing a 19 per cent slide in revenue.

The company reported sales revenue of $786 million for the three months to June – down 5 per cent on the previous quarter and 19 per cent from the same period last year.

This was despite production being up 12 per cent from a year ago at 14.3 million barrels of oil equivalent, thanks mainly to the company’s stake in a major liquefied natural gas project in Papua New Guinea.

Santos owns 13.5 per cent of the $US19 billion ($25.6 billion) PNG LNG project.

The slide in revenue was driven by a 32 per cent fall in the price the company received for its oil, driven by a global oversupply.

But the production increase means Santos has fared better than rival Woodside, which announced on Thursday a 47 per cent slide in year-on-year revenue for the same period.

Meanwhile Santos has cut its capital investment heavily and says it is bringing down production costs.

“Santos is taking positive steps to strengthen the company’s operating position in the lower oil price environment,” chief executive David Knox said in a statement.

The company’s flagship Gladstone LNG project at Curtis Island in Queensland was on track to produce its first liquefied natural gas by September, Mr Knox said.

Santos also reaffirmed its full-year forecast for production of 57 million to 65 million barrels, production costs of $14.20 to $14.60 a barrel, and capital investment of $2 billion.

Shares in Santos closed 7 lower at $7.65.