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Highlights
- The ASX 200 materials sector ended in green today, which seems to be reason behind Lynas’ share price gain.
- The company also delivered strong financials last week, which could be another reason for its share price gain.
- Lynas also announced that it is expecting better financial performance in future.
The shares of Lynas Rare Earths Limited (ASX:LYC) closed, trading 3.942% higher at AU$8.7 per share on the ASX today (11 May).
The share price of Lynas has gained approximately 51% on the ASX over the past 12 months. On the other hand, Lynas’ year-to-date share price fell over 21% on the ASX today (11 May).
What is the reason behind Lynas’ share price jump today?
There is no recent update from the company on the ASX, yet the shares of Lynas closed almost 4% strong on the ASX today as the ASX 200 Materials sector performed well today. This could be the reason behind Lynas’ share price gain today.
The S&P/ASX 200 Materials sector (ASX:XMJ) closed 0.868% higher at 16722.5 on the ASX today (11 May). The share price of XMJ has almost fallen by 6% on the ASX over the past 12 months. On the other hand, XMJ’s year-to-date share price also fell over 2% on the ASX today.
Last week Lynas released its quarterly financial results for Q3 FY22 stating high revenue driven by increased demands for rare earth minerals and price surge globally. The company further expects to deliver better results in the upcoming quarters as the demand is likely to increase even more due to the government’s goal of electrification of vehicles. This could be another probable cause for Lynas’ share price surge and heavy trading volume on the ASX.
Read more: Here's why Lynas (ASX:LYC) shares opened in red today
Image source: © Milslav78 | Megapixl.com
As a result, Lynas’ future goals are clear:
- Focusing on the improvement of its operating performance, resource development process and setting benchmarks in the industry.
- Taking faster steps towards company growth and increasing the company’s human resources.
- Delivering a further stronger financial result and ESG outcomes along with offering attractive community benefits.
About Lyna
Lynas Rare Earths Limited is an ASX-listed mining company with a market capitalisation of AU$7.55 billion. The company was established in 1983 and is primarily involved with the exploration and production of rare earth elements. With its headquarter in Perth, Australia, Lynas is known for the production and sale of rare earth minerals from LAMP Malaysia.
Read more: Why are Galileo Mining (ASX:GAL) shares up over 140% today?
