Lynas (ASX:LYC) share price is one to watch after announcement

There is surging demand for rare-earth elements sourced outside of China, and new drilling might prove to be a boon for this miner.
The post Lynas (ASX:LYC) share price is one to watch after announcement appeared first on The Motley Fool Australia. –

The Lynas Rare Earths Ltd (ASX: LYC) share price will be one to watch when trading resumes this morning. That’s after the company announced it commenced more drilling at one of its rare-earth elements mines.

Before market open, shares in the mineral explorer are trading for $7.34. They ended the previous trading day up 2.23%.

Let’s take a closer look.

The Lynas share price will be one to watch

In a statement to the ASX, Lynas says they have begun, “deep core drilling into fresh carbonatite below the current Rare Earth Elements (REE) open pit mine,” at Mt Weld in Western Australia.

According to the company, highlights include:

Completion of drilling, photography and geological logging
The identification of dolomite, ankerite, calcite and phoscorite
Concluding there are an array of concentrations of REE, including “visibly coarse grained REE”
All reports are due in by the end of the year
More work to gain a better understanding of the drill site will be conducted

It remains to be seen what this will mean for the Lynas share price.

Management commentary

Lynas CEO and managing director Amanda Lacaze said:

We are excited about this deep exploration drillhole into the Mt Weld carbonatite. The world will need increasing supplies of Rare Earths for many years to come. The Mt Weld orebody is recognised as one of the richest known deposits in the world. Expanding our knowledge of this ore body is an essential part of ensuring Lynas continues to grow as a reliable supplier to global markets.

This is the first time we have conducted a one-kilometre-deep exploration drilling at Mt Weld. The results will expand the ore body knowledge of the Mt Weld REE deposit and will assist planning for future resource expansion drilling into the fresh carbonatite.

Lynas share price snapshot

Over the past 12 months, the Lynas share price has increased 219%. Only in the last month, Lynas shares have appreciated a whopping 30.1%.

One of the main drivers for this rather large increase is the surging demand for REE sourced outside of China. Another reason is the most recent Lynas quarterly update. Lynas’ production, revenue, and receipts were all up. The Lynas share price rocketed 10% on the day.

Lynas Rare Earth has a market capitalisation of $6.6 billion.

The post Lynas (ASX:LYC) share price is one to watch after announcement 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

ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high

These were the best performing ASX 200 shares in July

These were the best performing ASX 200 shares last week

5 ASX 200 shares hitting record highs. What do they have in common?

Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News

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!