For a while now, Lynas Rare Earths Ltd (ASX: LYC) shares have been an eye-catcher on the ASX boards. Even before its most recent share price run, Lynas was a company that has long attracted attention due to its unique position as not just one of the few rare earths miners in Australia, but also the largest.
It was only a few years ago that one of the ASX’s largest constituents, Wesfarmers Ltd (ASX: WES), tried to buy up Lynas in full. It has been to the benefit of Lynas shareholders (and to the detriment of Wesfarmers investors) that that deal fell through.
So as we’ve briefly touched on, Lynas has been on an absolutely stellar share price run over the past two years. But how much money exactly has the Lynas share price made its investors? Let’s dig in.
How rich has Lynas made its investors?
Fittingly, the lowest share price Lynas has touched over the past few years was back in March 2020, at the height of the coronavirus-induced share market crash. At the time, Lynas got down to around $1.25 a share.
Today, it’s trading at $8.99 at the time of writing, having lost a nasty 3% thus far today.
That puts its gains at an approximate but very pleasing 620% since 27 March 2020.
So if an investor bought $10,000 worth of Lynas shares back then for $1.25 each, they would have picked up 8,000 shares for their efforts. Those 8,000 shares would be worth roughly $71,920 at today’s pricing. Pleasing stuff indeed, if any investor was actually lucky enough to make this trade.
But it could have been a lot better. Like many ASX shares, Lynas has taken a substantial haircut over the past month or two. We only have to go back less than a month to see the Lynas share price at a new record high of $11.39 a share, a good 20% off today’s pricing.
At that all-time high, those 8,000 Lynas shares would have been worth $91,120.
Needless to say, Lynas has been a very lucrative investment to have held in recent times. Especially over the past two years or so.
At the current Lynas Rare Earths share price, this ASX rare earths miner has a market capitalisation of $8.13 billion.
The post Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years 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.
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*Returns as of January 13th 2022
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Motley Fool contributor Sebastian Bowen 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 owns and has recommended Wesfarmers Limited. 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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