Insights

Here’s why the Lynas (ASX:LYC) share price is on watch today

Record setting quarterly results for Lynas puts it in focus today.
The post Here’s why the Lynas (ASX:LYC) share price is on watch today appeared first on The Motley Fool Australia. –

The Lynas Rare Earths Ltd (ASX: LYC) share price will be in investor’s sights today.

This comes after the rare earths producer released its June quarterly report. At the time of writing, the Lynas share price is sitting at $6.43.

Why is the Lynas share price in focus?

The Lynas Rare Earths share price could be one to watch today following the company’s release of its quarterly activities report.

According to the release, both sales revenue and receipts were record setters for Lynas. During the quarter the company recorded $185.9 million in sales revenue and $192 million in sales receipts. For comparison, Lynas reported $38 million in sales revenue in the 2020 June quarter.

The uptick in revenue and receipts came from increased production of rare earth oxides (REO) of 46.5% on the prior corresponding period to 3,778 tonnes. Meanwhile, neodymium and praseodymium (NdPr) production came in at 1,393 tonnes – representing a 79.7% increase on the prior corresponding period. These high rates of growth will likely draw attention to the Lynas share price today.

Also aiding the company’s increased sales was a higher average selling price for the rare earths. The average price per kilogram almost doubled over the year, from $20.20 per kilo in Q4 FY20 to $39.10 per kilo in Q4 FY21.

Furthermore, Lynas’ cash balance closed at $680.8 million for the quarter – an increase of 19.7% on its balance at the end of the previous quarter.

Further progress

During the quarter the company progressed its Lynas 2025 projects. These include its rare earths processing facility in Kalgoorlie and the proposed integrated United States processing facility. Currently, the US Department of Defense is reviewing detailed work submissions.

In addition to this, preparation for the next mining campaign at its Mt Weld site is underway.

Last week the company also received a $14.8 million grant from the Australian government’s Modern Manufacturing Initiative.

A look at share price performance

The Lynas Rare Earths share price has been one of the best in the S&P/ASX 200 Index (ASX: XJO) over the past year. Any shareholder that has held onto the company’s shares has been rewarded a 200% rise in the past 12 months.

However, due to the rocketing share price outpacing Lynas’ earnings, the company’s price-to-earnings (P/E) ratio has jumped to 417 times. Comparatively, the Australian metals and mining industry average P/E ratio is 13.1 times.

The post Here’s why the Lynas (ASX:LYC) share price is on watch today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lynas Rare Earths right now?

Before you consider Lynas Rare Earths, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lynas Rare Earths wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

5 things to watch on the ASX 200 on Monday

Here’s why the Lynas (ASX:LYC) share price is soaring 8% today
ASX 200 rises, Zip drops, Northern Star rises

What these 5 outperforming ASX shares have in common

Australian Strategic Materials (ASX:ASM) share price stilled by trading halt

Motley Fool contributor Mitchell Lawler owns shares of Lynas Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!