'Well-funded' Lynas on track to meet target Rare earths miner Lynas Corp says it is on track to meet its target of producing 11,000 tonnes per year of rare earth oxides at its controversial Malaysian rare earths plant by the end of the second quarter. Lynas, which has batted legal challenges to its Kuantan facility, produced its first products during the quarter. The miner said it "remained well-funded into the generation of sustainable operating cash flow," adding that it had $172 million of unrestricted cash-on-hand as of the end of March following a capital raising late last year, and a $15.2 million research and development grant from the Australian Tax Office. It reported a net operating cash flow loss of $15.8 million for the March quarter and $68.9 million year-to-date. Lynas shares were 1.56 per cent higher at 48.75 cents around in afternoon trade today. The miner said the average Mount Weld China FOB (free on board) "basket price" dropped by 13 per cent during the first quarter of 2013 to $US37.22. Rare earths such as lanthanum oxide have fallen up to 74 per cent in the year-to-date, it added. "Price on both domestic and FOB China basis remain down significantly from the same time last year," Lynas said. But the miner said it expected the demand for rare earths to grow at above-GDP rates in the medium term, as the appetite for the minerals increases in the rare earths permanent magnets, autocatalysts and fluid cracking catalysts sectors. At the price level that we see today, can we make money? Yes, we can still have a positive margin," newly appointed Lynas' chairman Eric Noyrez said in an earnings call on Thursday. Deutsche Bank analyst Chris Terry said the quarterly results were as expected and investors' biggest concern would centre around the continued slide in the rare earths prices. "We don't see a huge downside to the pricing from here, but we haven't seen evidence that it's stabilised at this point," Mr Terry said. Another factor weighing on Lynas is the outcome of the Malaysian elections, which are set to take place on May 5. At the same time, only one outstanding appeal against Lynas' operations remains, with the outcome expected to be in favour of the miner, Mr Terry added. It's been reasonably low risk to further disruptions from the appeal front. Lynas started production at its Malaysian facility, which processes rare earths from its Mount Weld mine in Western Australia, in December after extensive delays following legal action from environmentalists. The company has strongly refuted claims the plant could be an environmental hazard. Last month, Lynas' chairman Nicholas Curtis stepped down as chief executive and was replaced by Eric Noyrez. Lynas is one of the few non-Chinese rare earths miners in a market dominated by the east Asian country.