The Lynas Corporation Ltd (ASX: LYC) share price reached a new yearly high of $3.85 yesterday as the company announced positive drill results. In today's trade, the Lynas share price has given up a little of its gains, falling 0.95% lower to $3.66.
Shares in the rare earth miner have now returned 60% since the start of the year, easily outpacing the All Ordinaries Index (ASX: XAO) which is down 0.03% over the same period.
Image source: Getty Images
What Lynas does
Lynas is an Australian company involved in the exploration and mining of rare earth metals. The company has a long history and first listed on the ASX in 1986.
It is currently the world's second largest producer of rare earths and only significant producer outside China. Rare earth metals have many manufacturing uses, including in electric cars and phones.
Lynas currently boasts a market capitalisation of $3.32 billion.
What did Lynas announce?
Yesterday, Lynas announced that its exploration team had identified a potential rare earth element below its Mt Weld mine. The news comes as the company was drilling deeper in the fresh carbonatite below areas of mineral resources and ore reserves.
Lynas CEO and director Amanda Lacaze explained the significance of the find, saying:
A cornerstone of Lynas' 2025 growth strategy is ongoing access to high-quality Rare Earth feedstock. Our Mt Weld mine in Western Australia is recognised as one of the world's highest grade operating Rare Earth mines and has 25 plus year mine life. We are encouraged by these new Exploration Results which go beyond the area of the 2018 Mineral Resources and Ore Reserves Statement. We are committed to exploring below the current mineral resource to understand the potential for primary REE (Rare earth element) mineralisation below the weathered zone."
The Lynas share price is trading slightly lower today, falling by 0.95%. However, shares in the company reached a 52-week high yesterday and are up 30% in the last month.
