Buying Lynas shares? Here’s why the ASX rare earths stock is flying higher in Wednesday’s sinking market

Lynas Rare Earths Ltd (ASX: LYC) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed yesterday trading for $15.25. In morning trade on Wednesday, shares are changing hands for $16.13 apiece, up 5.8%.

For some context, the ASX 200 is down 0.3% following the big overnight sell-down in US stock markets.

Here’s why that’s not holding back Lynas’ bull run today.

Lynas shares jump on sales revenue growth

Investors are bidding up Lynas shares following the release of the miner’s second-quarter update (Q2 FY 2026).

Highlights for the three months to 31 December include a 43% year-on-year increase in gross sales revenue to $201.9 million. And sales receipts of $185 million were up 26.8% from Q2 FY 2025.

Total rare earth oxide (REO) production came in at 2,382 tonnes. That’s down around 9% year on year and down just over 40% from the prior quarter.

Neodymium (Nd) and Praseodymium (Pr) production of 1,404 tonnes was down around 30% from Q1 FY 2026. But most of that pullback looks to already have been priced into Lynas shares, with management flagging significant power supply disruptions at its Kalgoorlie plant in early November, alongside major planned kiln maintenance at its Kuantan facility in Malaysia.

Dysprosium and Terbium (DyTb) production came in at 26 tonnes for the quarter.

Lynas reported that the average selling price increased to $85.60 per kilogram across all its rare earths products, up 74% from Q2 FY 2025.

As at 31 December, the ASX 200 miner had cash and short-term deposits of $1.03 billion.

What else is happening with the ASX 200 rare earths miner?

The December quarter also saw Lynas complete the commissioning of its Mt Weld expansion project, with its new flotation circuit ramping up.

Lynas shares could also gain longer-term support with the company working on the expansion of heavy rare earth (HRE) separation at its Malaysian facility. Management forecasts the first production of Samarium – a heavy rare-earth metal used in high end magnets – in Q4 FY26.

What’s ahead for Lynas shares?

The end of FY 2026 will see Lynas Rare Earths CEO and managing director Amanda Lacaze step down from her role.

“I have been privileged to lead this company for the past 12 years and believe this is the right time to make the transition,” Lacaze said. “I remain fully committed to my role, to continuing to deliver value for shareholders, and working to ensure a smooth transition.”

With today’s intraday gains factored in, Lynas shares are up 134.5% over 12 months, racing ahead of the 4.6% one-year gains delivered by the ASX 200.

The post Buying Lynas shares? Here’s why the ASX rare earths stock is flying higher in Wednesday’s sinking market appeared first on The Motley Fool Australia.

More reading

• Lynas Rare Earths reports 43% sales growth, CEO to retire
• Why Lynas shares are sliding today, despite a massive year
• Here are the top 10 ASX 200 shares today
• Why Catalyst Metals, Lynas, Polynovo, and St George Mining shares are pushing higher today
• ASX 200 materials sector outperforms as mining shares continue their ascent

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.