Lynas Corp. Ltd. (LYSCF)

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Lynas beats production expectations

Rare earths miner Lynas Corporation on Wednesday revealed that neodymium/praseodymium (NdPr) production for the six months to December had exceeded production targets. NdPr production for the six months reached 1 860 t. As a result of Lynas exceeding its first NdPr production target, the interest rate under an existing Japan Australia Rare Earths (JARE) senior loan facility has been reduced from 7% a year to 6.5% a year, effective from January 1. In August last year, Lynas refinanced its long-term debt with JARE and the Mt Kellett-led bondholder group. Under the terms of the restructuring agreement, Lynas had been given a two-year extension of its principal debt maturity date, from 2016 to 2018. Principal repayments due prior to the maturity of the JARE facility had also been adjusted downwards from $206-million to $2-million in 2016. A further $20-million was due in 2017, with the remainder of the loan payable in 2018. A A$60-million liquidity buffer had also been created. The JARE senior loan facility agreement specified NdPr production targets for each six-month period from July 2015 until December 2017.