Odd one out: Lynas share price inches ahead while miners drill down

Female miner in hard hat and safety vest on laptop with mining drill in background.Female miner in hard hat and safety vest on laptop with mining drill in background.

The Lynas Rare Earths Ltd (ASX: LYC) share price is edging higher today on no news.

At the time of writing, the Lynas share price is trading at $8.21 apiece, more than 1% in the green.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has slipped more than 3% on Friday as the sector continues a weak spell.

What’s up with the Lynas share price?

Despite no market sensitive news today, Lynas caught a bid yesterday following the the final session of the Sydney Energy Forum.

The large-scale event brought together numerous energy industry stakeholders, politicians and company executives.

Lynas CEO, Amanda Lacaze, was amongst the several Australian company executives to speak at the forum on 12 June.

Lacaze told the Forum markets are increasingly recognising that “singular supply chain is a risk” and that Lynas is “seeing increased interest in outside-China governments”.

Meanwhile, Dr Faith Birol, International Energy Agency (IEA) executive director, noted China’s 80% global supply of rare earths and advocated for this to change.

With its position as the only producer of rare earths at scale outside of China, Lynas is poised to benefit from such a structural shift.

It’s unlikely the various language used at the Sydney Energy Forum had any material impact on the Lynas share price.

Nevertheless, industry heavyweights are pushing for a change. Lynas’ CEO Lacaze was supportive of the move after recognising the “further challenges [faced] in terms of resilient supply chains”.

The Lynas share price is up 35% in the past 12 months.

 

The post Odd one out: Lynas share price inches ahead while miners drill down appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Scott Phillips.

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