The Lynas Rare Earths Ltd (ASX: LYC) share price is up more than 5% today. It’s currently one of the biggest risers in the S&P/ASX 200 Index (ASX: XJO).
Lynas has also been one of the stronger performers over the past year. Over the last 12 months, the Lynas share price has risen by around 85%.
The materials sector is the strongest-performing sector on the ASX right now. Looking at some of the biggest names, the BHP Group Ltd (ASX: BHP) share price is up 2.44%, the Rio Tinto Limited (ASX: RIO) share price is up 1.94%, and the Fortescue Metals Group Limited (ASX: FMG) share price is up 1.92%.
What’s happening with the Lynas share price?
While there has been no official news from the rare earth miner today, the company’s share price has risen by around 20% since its FY22 half-year result.
The first six months of the current financial year showed a significant year-on-year increase in revenue and profitability.
Revenue rose by 55% to $314.8 million. The cost of sales decreased by 7% to $140.3 million. Net profit after tax (NPAT) surged 286% to $156.9 million.
Management said there is continued “buoyancy” of the market and strong customer demand for a sustainable supply of rare earths. According to Lynas, its customers are optimistic about demand growth, and market conditions are robust. The NdPr (neodymium and praseodymium) market price exceeded US$100 per kilo in November 2021, for the first time since 2011.
The company is investing in several areas in line with its Lynas 2025 strategy. For example, it’s working on a rare earth processing facility in Kalgoorlie and it’s also investing in its Mt Weld resource in Western Australia.
The post Why is the Lynas (ASX:LYC) share price having such a stellar start to the week? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Lynas right now?
Before you consider Lynas, 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 wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Despite a lacklustre Wednesday, the Lynas (ASX:LYC) share price remains up 20% in a month. Here’s why
- Why are ASX 200 mining shares having such a dire day?
- What’s the outlook for the Lynas (ASX:LYC) share price?
- Up 10% in one week, down 10% in the next. What’s going on with the Lynas (ASX:LYC) share price?
- These were the best performing ASX 200 shares last week
Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. 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.
from The Motley Fool Australia https://ift.tt/7zNf60W
Leave a Reply