The Lynas share price reached a 52-week high yesterday as the company released positive drill results. We take a closer look.
The post Why the Lynas (ASX:LYC) share price just hit a 52-week high appeared first on Motley Fool Australia. –
The Lynas Corporation Ltd (ASX: LYC) share price reached a new yearly high of $3.85 yesterday as the company announced positive drill results. In today’s trade, the Lynas share price has given up a little of its gains, falling 0.95% lower to $3.66.
Shares in the rare earth miner have now returned 60% since the start of the year, easily outpacing the All Ordinaries Index (ASX: XAO) which is down 0.03% over the same period.
What Lynas does
Lynas is an Australian company involved in the exploration and mining of rare earth metals. The company has a long history and first listed on the ASX in 1986.
It is currently the world’s second largest producer of rare earths and only significant producer outside China. Rare earth metals have many manufacturing uses, including in electric cars and phones.
Lynas currently boasts a market capitalisation of $3.32 billion.
What did Lynas announce?
Yesterday, Lynas announced that its exploration team had identified a potential rare earth element below its Mt Weld mine. The news comes as the company was drilling deeper in the fresh carbonatite below areas of mineral resources and ore reserves.
Lynas CEO and director Amanda Lacaze explained the significance of the find, saying:
A cornerstone of Lynas’ 2025 growth strategy is ongoing access to high-quality Rare Earth feedstock. Our Mt Weld mine in Western Australia is recognised as one of the world’s highest grade operating Rare Earth mines and has 25 plus year mine life. We are encouraged by these new Exploration Results which go beyond the area of the 2018 Mineral Resources and Ore Reserves Statement. We are committed to exploring below the current mineral resource to understand the potential for primary REE (Rare earth element) mineralisation below the weathered zone.”
The Lynas share price is trading slightly lower today, falling by 0.95%. However, shares in the company reached a 52-week high yesterday and are up 30% in the last month.
These are high octane, high upside-potential stocks… Stocks that are growing like gangbusters, and have the potential to quickly turn modest initial investments into small fortunes.
Since inception, our Extreme Opportunities service has delivered some moonshot stock picks that have absolutely shattered the market, some have even trebled in value, completely dwarfing the market average.
And now is a perfect time to join in this Black Friday Sale. You can save a whopping 75% off a full 1-year membership.
Returns as of 27th November
- ASX 200 events this week that could move the market
- Which 5 ASX shares hit 52-week highs on Friday?
- Top ASX shares to buy in November 2020
Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.