Key points
- The Lynas Rare Earths share price gained 20% in a month
- In a year, the company’s shares have rocketed 152%
- The company mines rare earths used in batteries for electric cars
The Lynas Rare Earths Ltd (ASX: LYC) share price is continuing to gain today after a huge year in 2021.
The company’s shares are currently trading at $11.13, up nearly 20% in a month.
Let’s take a look at what investors may have been considering in the past month.
Big month
The Lynas share price gained 23% between market close on 21 December and January 5. Since then, it has seen a couple of minor dips but remains in the green. In the past year, the company’s share price has rocketed nearly 152%.
It seems global demand for rare earths used in batteries for electric vehicles may be continuing to impact the Lynas share price.
Lynas Rare Earths operates a mine at Mt Weld, Western Australia and an advanced materials plant in Gebeng, Malaysia.
A positive broker note out of Macquarie recently gave the company an outperform rating and price target of $12.20 per share. That’s nearly 10% more than the current share price.
In late December, the company revealed its Malaysian permanent disposal facility (PDF) for Water Leach Purification (WLP) residue has received regulatory approval.
The company has conducted multiple impact assessments for the project along with community consultation.
Finally, on 13 January, the company released its 2021 modern slavery statement. This outlined the actions the company is taking to address the risks of slavery in its operations.
Further, Lynas said no workplace transmission of COVID-19 was recorded at the company. The Lynas share price climbed a further 1% on Thursday.
Share price snap shot
The Lynas Rare Earths share price has returned about 152% to investors in the past year. That compares to the S&P/ASX 200 Index (ASX: XJO)’s return of around 10% over the same period.
In the year to date, the company’s shares are up by more than 9%.
The company commands a market capitalisation of roughly 10 billion on the current share price.
The post Why is the Lynas Rare Earths (ASX:LYC) share price up 20% in a month? appeared first on The Motley Fool Australia.
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More reading
- Here’s why leading brokers name the Lynas (ASX:LYC) share price as a buy
- These were the best performing ASX 200 shares last week
- Here are the 5 best performing ASX 200 mining and resource shares of 2021
- Why did the Lynas Rare Earths (ASX:LYC) share price surge 155% in 2021
- ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise
Motley Fool author Monica O’Shea has no position in any of the stocks mentioned. 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.
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