It's been a relatively pleasant day of trading on the ASX boards so far this Wednesday. At the time of writing, the All Ordinaries Index (ASX: XAO) has gained 0.45%, putting the index at just over 7,720 points. But let's talk about the galloping Arafura Rare Earths Ltd (ASX: ARU) share price.

Arafura shares are on fire today. The rare earths producer is currently rocketing a stunning 11.82% to 62 cents per share — a new 52-week high for Arafura.

But it's also the highest the company's shares have traded at in not three, not five, not ten, but eleven-and-a-half years. Yes, the last time Arafura shares traded in the 60-cent range was in late 2011:

So what's behind the new 11-year high that Arafura investors are enjoying today?

Why is the Arafura share price at an 11-year high?

Well, most of the heavy lifting was done in 2022 – a year that saw Arafura shares rise by a whopping 121%.

As my Fool colleague Monica reported last month, this was due to a few factors, including rising demand for rare earths, positive developments at the company's Nolans Project, long-term supply deals with major companies like Hyundai, and love from ASX brokers.

But let's talk about what Arafura shares are doing today. It's not often that an ASX share rockets by more than 10%.

Well, unfortunately, it's not entirely clear what is driving Arafura shares so convincingly higher. There hasn't been any major news from the company itself today.

But what we do know is that Arafura's peers in the materials sector are also having a cracker of a day. Take the Lynas Rare Earths Ltd (ASX: LYC) share price. It's currently up by a robust 4.37% at $9.80 a share. Fellow minerals explorer Australian Strategic Materials Ltd (ASX: ASM) is doing even better than Arafura, currently up an eye-catching 12.53%.

Lithium shares were also on fire today, with Pilbara Minerals Ltd (ASX: PLS) gaining around 3% this monring, while Sayona Mining Ltd (ASX: SYA) was up close to 4%.

So it looks as though investors are flooding into these sorts of shares en masse today. Given there is no other news out from Arafura, perhaps we can conclude that the company is just benefitting from a flood of optimism and goodwill for ASX materials shares this Wednesday.

At the current Arafura Rare Earths share price, this ASX materials share has a market capitalisation of $1.31 billion.

The post Why is the Arafura share price surging 12% to an 11-year high? appeared first on The Motley Fool Australia.

It's been a big few years for ASX rare earths shares as the market seemingly turned its attention to the critical minerals.

Indeed, the share price of S&P/ASX 200 Index (ASX: XJO) miner Lynas Rare Earths Ltd (ASX: LYC) has soared nearly 400% over the last five years as demand for its products saw its profits surge.

But the ASX 200 giant isn't the only share involved in rare earths. Here are five others that haven't yet commanded such attention.

5 often-overlooked ASX shares involved in rare earths

Demand for rare earths could soar in the coming years amid the world's transition to renewable energy. The materials are a critical component of most technology ­­– including that needed to harness power from the elements and certain batteries.

With this in mind, it's likely no surprise that Lynas is far from the only ASX share working to produce the elements.

Iluka Resources Limited (ASX: ILU) is a $4 billion mineral sands miner and also works in the rare earths space. The company recently made a final investment decision on its Eneabba rare earths refinery.

Its shares are currently trading for $10.42.

Arafura Rare Earths Ltd (ASX: ARU) is also an ASX rare earths stock. The company is working to kick off construction at its Nolans Project – located 135 kilometres from Alice Springs – in 2023.

Right now, stock in the mining developer is swapping hands for 40.5 cents.

Another ASX rare earths company is Hastings Technology Metals Ltd (ASX: HAS). It's developing two resources in Western Australia. Its Yangibana project, in the Gascoyne region, covers around 650 square kilometres.

The company's share price is $3.70 at the time of writing.

The fourth ASX rare earths share market watchers might not have been across is Australian Strategic Materials Ltd (ASX: ASM). As the name suggests, the company is focused on Aussie assets. Its cornerstone project is located in Dubbo, New South Wales, and is ready for construction to begin.

An investor can snap up the stock for $1.60 apiece today.

Finally, ASX share Peak Rare Earths Ltd (ASX: PEK) is, of course, working in the rare earths space.

It's developing the Ngualla project in Tanzania – one of the world's largest, highest grade, and lowest cost, neodymium praseodymium deposits. It also has the potential to build a rare earths refinery in the United Kingdom.

The Peak share price is 47.5 cents right now.

The post 5 ASX shares involved with rare earths (aside from Lynas) appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Amcor PLC (ASX: AMC)

The Amcor share price is down 4% to $17.37. This morning this packaging company released its quarterly update and revealed a 9% increase in revenue to US$3,712 million and a 15% jump in net income to US$232 million. Investors still sold down Amcor's shares despite its revenue being US$200 million ahead of estimates and its earnings being in-line.

Australian Strategic Materials (Holdings) Ltd (ASX: ASM)

The Australian Strategic Materials share price is down 9% to $1.80. Investors have been selling this integrated materials company's shares after it announced firm commitments for a $30 million institutional placement. These funds are being raised at a 12.4% discount of $1.73 per new share. The proceeds will be used to accelerate development of its Korean Metals Plant and Dubbo Project.

Goodman Group (ASX: GMG)

The Goodman share price is down 3% to $17.11. This morning Goodman released its first quarter update and revealed that FY 2023 has started positively. And while the company has reaffirmed its earnings growth guidance of 11%, some investors may have been expecting an upgrade. Goodman famously under-promises and over-delivers.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 3.5% to $5.12. This is despite there being no news out of the lithium miner today. However, a number of the lithium shares are falling today. This may have been driven by profit taking after some strong gains recently.

The post Why Amcor, Australian Strategic Materials, Goodman, and Pilbara Minerals are dropping appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Australian Strategic Matrls (Hldngs) Ltd (ASX: ASM)

The Australian Strategic Materials share price is up 16% to $2.41. This follows the release of the company's quarterly update this morning. That update reminded investors that commissioning for neodymium praseodymium (NdPr) metal and alloy products drew closer to completion this quarter, with positive results achieved. The company also successfully produced neodymium iron boron (NdFeB) strip metal alloy while commissioning the strip caster.

Bega Cheese Ltd (ASX: BGA)

The Bega Cheese share price is up 4.5% to $3.39. This is despite the diversified food company announcing the exit of its CEO Paul van Heerwaarden at its annual general meeting. He will step down in the coming months and be replaced by its COO, Pete Findlay. In addition, at the meeting, the company re-affirmed its FY 2023 guidance for EBITDA in the range of $160 million to $190 million.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price is up 11% to $2.48. Investors have been buying this horticulture company's shares after private equity firm Paine Schwartz Partners acquired a 13.78% stake. Paine, which used to own Costa, paid an average of approximately $2.51 per share, which is a 12.5% premium to the Costa share price at yesterday's close.

Elmo Software Ltd (ASX: ELO)

The Elmo share price has surged 40% higher to $4.63. This follows news that the HR and payroll platform provider is recommending a takeover offer from K1 Investment Management. The Los Angeles-based investment firm has tabled a $4.85 cash per share offer, which represents a 100% premium to the Elmo share price prior to the company first revealing takeover interest earlier this month.

The post Why Australian Strategic Materials, Bega Cheese, Costa, and Elmo shares are racing higher appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) gained 1.81% today, but one ASX mining share lifted a great deal higher.

The Australian Strategic Materials Ltd (ASX: ASM) share price jumped 2.9% to close Thursday's trading session at $3.19. In earlier trade, it climbed a hefty 7.82% before pulling back.

So, what did this ASX All Ords share report to the market today?

New agreement

Australian Strategic Materials provided an update on its Korean Metals plant. The company's subsidiary KSM Metals Co Ltd, has signed a binding agreement on the sale of neodymium praseodymium.

The deal sees metal produced at the plant sold to Korean company NS World Co Ltd, which plans to use the neodymium praseodymium to make bonded magnets.

Under the agreement, KSM Metals will sell and deliver up to 10 tonnes of the rare earths metal between September and December.

What did management say?

Commenting on the news, Australian Strategic Materials CEO Rowena Smith said:

Securing the first sale of neodymium praseodymium ingot from our Korean Metals Plant is an
important milestone for ASM. In just over a year, we have taken our Korean Metals Plant from start of construction to commercial production.

This is a remarkable feat of dedication from our team.

Looking ahead, Smith said commissioning and ramp-up at the plant would continue in the second half of this year. She added:

We look forward to securing further sales contracts in the coming months and will update the
market as contracts are finalised.

Smith also presented at the New World Metals Investment series today. In her presentation, she highlighted how the demand for rare earth oxides would soar by 2032.

She highlighted the company's Dubbo Project in NSW was construction ready with a processing plant on site. The company is exploring zirconium, niobium and hafnium in this project.

Share price snapshot

Despite today's gains, the Australian Strategic Materials share price is down 74% over the past year and 70% year to date.

In the past month, the company's share price has fallen 22%.

For perspective, the ASX All Ords Index has fallen 9% in the past year.

Australian Strategic Materials has a market capitalisation of about $456 million based on the current share price.

The post This ASX All Ords mining share is glowing greener today on 'important milestone' appeared first on The Motley Fool Australia.

As the transition towards renewable energy continues to inch forward day by day, perhaps the most abundant thematic – electric vehicles (EVs) – is leading the charge.

Lithium (and arguably, nickel and cobalt) is typically considered the darling child(ren) of the battery metals segment. However, one often-overlooked segment has opened up a compelling value proposition.

Rare earths, which, coincidentally, aren't all that rare (in the ground anyway), have garnered attraction lately.

The group is comprised of 17 metals that are essential to technological functions in society.

Rare earths ASX mining shares open a compelling proposition

According to Dr Kingsley Jones, analyst at Jevons Global Investment Advisory, "[t]he EV market thematic is driving higher demand for rare earth metals".

In a recent note, Jones covers the market for rare earths. In it he builds a core basket of portfolio companies to gain exposure to the space.

He said that demand has accelerated for the basket of rare earths within ASX mining shares. This is due to their use in high-performance magnets used in electric motors and generators.

In particular, the "rapid uptake of EVs and the very large generators used in wind turbines to provide renewable energy" has underpinned the demand.

Aside from that, China refines and produces more than 60% of the world's unprocessed rare earth oxides.

Not to mention, rare earths are notoriously hard to extract anyways. The reason? "Host minerals are difficult to process and the rare earths are hard to separate," Jones says.

With that, the analyst and his employer suggest five companies for investors to hone in on for exposure to rare earths from mine to metal, all the way downstream.

These include Arafura Resources Limited (ASX: ARU), Hastings Technology Metals Ltd (ASX: HAS) and Australian Strategic Materials Ltd (ASX: ASM). I've covered the other two here.

This basket of stocks provides a diversified offering of names with exposure to rare earths at different points along the value chain, Jones says.

Take a look at the returns for each of these shares for the past 12 months on the chart below.

The post 3 ASX mining shares primed for an 'exponential' energy transition: expert appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down over 2% to $5.87. This morning the team at Citi warned that demand from Appen's largest customers could be softening. The broker also believes that the company could be losing market share to Telus Corp's Lionbridge business. Citi remains neutral with a $6.60 price target on Appen's shares.

Arizona Lithium Ltd (ASX: AZL)

The Arizona Lithium share price is down 6.5% to 7.95 cents. This appears to have been driven by the completion of the the lithium explorer's $12 million placement at a discount of 7 cents per share this morning. The proceeds will be applied to the land purchase for the lithium processing plant, expansion and operation of the lithium research centre, and securing IP protection over its lithium processing technology.

Australian Strategic Materials Ltd (ASX: ASM)

The Australian Strategic Materials share price is down 3% to $3.17. Investors have been selling this integrated materials company's shares after it announced the exit of its managing director and chief executive officer, David Woodall, with immediate effect. Mr Woodall gave no explanation for his departure.

Nuix Ltd (ASX: NXL)

The Nuix share price is down 11% to 65 cents following the release of a trading update. The investigative analytics and intelligence software provider revealed that it expects its revenue to be in the range of $151 million to $154 million in FY 2022. The midpoint of this range implies a 13.4% decline year on year. Things were much worse for its statutory EBITDA, which is expected to come in at $10 million to $12 million. This will be a ~64% decline year on year.

The post Why Appen, Arizona Lithium, Australian Stategic Materials, and Nuix shares are dropping appeared first on The Motley Fool Australia.

The Australian Strategic Materials Ltd (ASX: ASM) share price is heading south today following the shock departure of a senior leadership figure.

During mid-morning trade, the emerging critical metals producer's shares are down 10.12% to $2.93.

Australian Strategic Materials shares hit 52-week low

Investors are offloading Australian Strategic Materials shares after the surprise announcement that its managing director and CEO, David Woodall will leave the company.

According to the release, Woodall's resignation will take immediate effect.

Consequently, the hasty departure has sparked concern among shareholders which is dragging the Australian Strategic Materials share price to a 52-week low.

The board noted Woodall's contribution in progressing the Dubbo project as well as overseeing the partnership agreement with Hyundai Engineering.

Australian Strategic Materials chief operating officer, Rowena Smith will take over the CEO role.

Smith is a highly experienced global mining executive with more than 30 years' experience under her belt.

Having served as chief operating officer since July 2021, Smith led the Dubbo project team to deliver an optimisation study.

Furthermore, she also headed up the construction and commissioning of the Korean Metals Plant.

Prior to joining the company, Smith was the chief sustainability officer and vice president of supply for South32 Ltd (ASX: S32).

She managed teams across a number of countries such as Australia, South Africa, Mozambique, Colombia and the United States.

Chair of Australian Strategic Materials, Ian Gandel said:

We are delighted that Rowena is leading the company through the next phase of its development. Rowena has demonstrated that she is a highly capable leader, underpinned by her extensive experience and track record in the mining sector.

With this appointment, the board has confidence there will be a seamless leadership transition, enabling ASM to continue to focus on delivering its mine-to-metals strategy.

Gandel went on to add:

The board thanks David, who led the company through its early stages following the demerger from Alkane, through to the delivery of a successful optimisation study and the construction of our Korean Metals Plant. We wish him all the success in the future.

About the Australian Strategic Materials share price

Over the past 12 months, the Australian Strategic Materials share price has lost around 60%.

Year-to-date has fared worse, down 72% so far.

Based on today's price, the company has a market capitalisation of roughly $457.10 million.

The post Why is the Australian Strategic Materials share price sinking 10% today? appeared first on The Motley Fool Australia.

The Australian Strategic Materials Ltd (ASX: ASM) share price is handing back all of Monday's gains and then some today.

At the time of writing, the Australian Strategic Materials share price is $5.06. That's 12% lower than its previous close and 3.78% lower than it was at the end of Friday's session.

For context, the broader market is in the green today. Right now, the All Ordinaries Index (ASX: XAO) is recording a 0.17% increase.

Let's take a look at what's going on with the critical metals producer this week.

Australian Strategic Materials share price tumbles

Australian Strategic Materials' shares are plunging back into the red on Tuesday.

It surged 9% yesterday after it exited a trading halt with news Korea's KCF Energy is investing US$15 million ($21.44 million at today's exchange rate) to buy new shares in the company for $8.90 apiece.

The Seoul-based company also agreed to revise the pair's framework agreement and negotiate a five-year offtake agreement for the supply of 2,800 dry metric tonnes of NdFEB alloy from the Korean Metals Plant.

The framework negotiations will see the companies discussing more investments in the ASX-listed critical metals producer.  

Thus, today's drop could be a simple market correction after yesterday's buying frenzy.

This week's movements included, shares in Australian Strategic Materials are trading 55% lower year to date. Though, they have gained 19% since this time last year.

The post Australian Strategic Materials share price sinks 12% following rally appeared first on The Motley Fool Australia.

Shares in the ASX rare earths and critical metals miner closed on Thursday at $5.26 per share. The company entered a trading halt on Friday at its own request pending today's equity funding announcement.

In morning trade, the Australian Strategic Materials share price stands at $6.87, up 30.7%.

What's piquing ASX investor interest today?

Investors are bidding up Australian Strategic Materials shares following a US$15 million (AU$10.4 million) funding announcement.

According to the release, Korean company KCF Energy will invest US$15 million of equity funding via a share purchase at an issue price of AU$8.90 per share.

Notably, that's 69% higher than what the Australian Strategic Materials share price closed for on its last day of trading

The parties are also revising their July 2021 Framework Agreement, reporting that negotiations are ongoing for a five-year offtake agreement for 2,800 dry metric tonnes of NdFeB alloy from the Korean Metals Plant.

One of the core negotiations in the Revised Framework Agreement is for KCM to facilitate the acquisition of 10% of Australian Strategic Materials (Holdings) shares for US$125 million by a "strategic investor".

The parties are also negotiating another US$105 million equity investment by KCM, which would be subject to Australian Strategic Materials shareholder approval.

Commenting on new investment, Australian Strategic Materials managing director, David Woodall said:

We welcome this investment in ASM from our Korean partners as we continue discussions and agree on terms to progress our Dubbo Project and importantly ASM's mine-to-metals strategy…

We are pleased to maintain our close relationship with Korea and our partners, who are highly supportive of ASM's mine-to-metals strategy. These partners wish to secure their supplies of the metals needed to drive Korea's manufacturing industry.

Separately, the critical metals miner released its investor presentation today.

Australian Strategic Materials share price snapshot

Today's big boost in the Australian Strategic Materials share price comes after a difficult few months for the critical metals miner.

To give you some idea, shares are up 59% over the past 12 months but are down 40% in 2022.

By comparison, the All Ordinaries Index (ASX: XAO) is up 2% over the 12 months and down 7% year-to-date.

The post Here's why the Australian Strategic Materials share price is surging 31% today appeared first on The Motley Fool Australia.

The Australian Strategic Materials Ltd (ASX: ASM) share price won't be going anywhere on Friday.

This comes as the company requested its shares be placed in a trading halt today.

At such, the emerging critical metals producer's shares are frozen at $5.26 cents apiece.

What's happening with Australian Strategic Materials?

Prior to the market opening, management requested the Australian Strategic Materials share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement in relation to an equity funding agreement and revisions to a framework agreement.

It's worth noting that Australian Strategic Materials shares have lost considerable value in the past month. Its shares are now down more than 26% after touching an 11-month low of $5.20 yesterday.

The company has requested the trading halt remains in place until Tuesday 17 May or following the release of the announcement, whichever comes first.

Project ready for construction

Headquartered in Western Australia, the company is focused on supplying high-purity metals, alloys and powders to global manufactures.

These advanced materials are used in the clean energies, electric vehicles, aerospace, electronics, and communications space.

Australian Strategic Materials wholly owns the Dubbo Project which holds rare earths, zirconium, niobium, hafnium, tantalum, and yttrium.

With all major approvals and licences in place, the project is ready for construction, subject to financing.

The company intends to develop the site to meet the high demand of a range of existing and future technologies.

Notably, once established, the project will be one of the few supply options outside China, according to the company.

About the Australian Strategic Materials share price

Over the past 12 months, Australian Strategic Materials shares have risen by 24% following strong investor hype in mid-2021.

Although, when looking since the start of the current year, its shares have receded to post a decline of 50%.

Based on valuation grounds, Australian Strategic Materials has a market capitalisation of roughly $775.65 million.

The post Why is the Australian Strategic Materials share price frozen today? appeared first on The Motley Fool Australia.

ASX mining shares were the star performers last quarter, with the basket coming clearly out on top.

The S&P/ASX 300 Metal & Mining Index (ASX: XMM) gained 14.7% between December 31 and March 31. The S&P/ASX 200 Materials Index (ASX: XMJ) also rose by 11.9% during the period. In contrast, the broader S&P/ASX 200 Index (ASX: XJO) edged just 0.74% higher.

While some names flourished and kept the sector easily afloat, it wasn't bonanza shareholder returns for everyone involved.

Here are the laggards of the mining sector for the three months of trade to 31 March 2022.

Underperforming ASX mining shares last quarter

We'll talk in terms of percentage change for the quarter, as the list differs when talking in terms of points and dollars.

Taking out the top spot for ASX mining laggards is Australian Strategic Materials (ASX: ASM), which slid 28.8% for the three months. This was followed closely by Chalice Mining Ltd (ASX: CHN) with a 26.3% loss.

Perenti Global Ltd claimed third spot, falling 19.35%.

Perhaps surprisingly, nickel player Nickel Mines Ltd (ASX: NIC) saw an 11.9% down-step too. Even as nickel prices surged to record heights in the quarter, the company's relationship with a large nickel supplier and trader had the market nervous about the stock.

Not all the laggards were in the red, however. Further down the list are shares such as Alumina Limited (ASX: AWC) with a 7.5% gain. That's not bad, but not great compared to the other winners.

One of the larger ASX mining shares, Pilbara Minerals Ltd (ASX: PLS), finished flat for the quarter.

Below are the top 10 underperforming ASX mining shares for the March quarter in table form.

The post All that glitters isn't gold: Here are the worst performing ASX mining shares of the quarter appeared first on The Motley Fool Australia.

The Australian Strategic Materials Ltd (ASX: ASM) share price zoomed ahead today to finish the session at $7.89, up 9.58%.

This followed an announcement today that the critical metals producer is teaming up with a leading South Korean company, Hyundai Engineering Corporation Co Ltd (KRX: 000720).

The companies will work together on the Australian Strategic Materials' Dubbo Project in NSW.

Australian Strategic Materials enters contract negotiations

ASX investors were bidding up the Australian Strategic Materials share price after digesting the company's news today.

In its statement, the company advised that it has signed a Heads of Agreement (HoA) with Hyundai Engineering Corporation (HEC).

This will enable exclusive negotiations to take place for the delivery of a Front-End Engineering and Design (FEED) for the project.

Should all go as planned, this could also progress to HEC winning the Engineering Procurement and Construction (EPC) contract.

Australian Strategic Materials previously requested a proposal process for the FEED, where HEC was identified as a preferred candidate. This was based on Hyundai's experience and capability in developing such projects.

Under the deal, both companies will have an exclusivity period for the award of FEED by 31 March 2022. If the delivery of FEED is successful, the award of EPC will be valid until 25 February 2023.

Australian Strategic Materials wants the FEED contract awarded in Q1 2022 and delivered in Q4 2022.

The terms of the FEED and EPC price, scope, and schedule are yet to be agreed upon.

Australian Strategic Materials managing director, David Woodall said:

The team at HEC are impressive being at the forefront of providing innovative and sustainable engineering solutions that will enable the successful delivery of our Dubbo Project, a key to our "mine to metal" strategy.

The desire of both HEC and ASM to work in partnership to deliver the Dubbo Project with significant benefits to both Korea and Australia put us in a great position as we continue discussions with Korean financial institutions to fund the development of Dubbo.

What is the Dubbo Project?

According to the Australian Strategic Materials website, the Dubbo Project is a wholly-owned "large in-ground polymetallic resource of rare earths, zirconium, niobium, hafnium, tantalum and yttrium".

Australian Strategic Materials "intends to develop the Dubbo Project to supply globally significant quantities of zirconium and rare earth materials, as well as contribute to the niobium and emerging hafnium industries.

"These materials are in high demand for a range of existing and future technologies – in particular clean energy and transportation."

About the Australian Strategic Materials share price

Over the past 12 months, the Australian Strategic Materials share price has rocketed by 50% in value. However, when looking at the year to date, its shares are down 30%.

Australian Strategic Materials commands a market capitalisation of roughly $1 billion.

The post Australian Strategic Materials (ASX:ASM) share price surges 9% on Hyundai deal appeared first on The Motley Fool Australia.

ASX shares with exposure to rare earths often find their way into the media headlines.

And for good reason.

Most of the ASX shares exploring for and producing rare earths have seen their share prices far outpace the broader index.

Here's what we mean…

ASX shares exposed to rare earths racing ahead

Over the past 12 months the All Ordinaries Index (ASX: XAO) is up 6.47%.

Over that same time, ASX rare earths share Australian Strategic Materials Ltd (ASX: ASM) has gained 71%. And the Iluka Resources Limited (ASX: ILU) share price has rocked 61%.

Hold on. We're not quite done yet.

Competitor ASX shares involved in rare earths include Dreadnought Resources Ltd (ASX: DRE), up 138% in 12 months; Hastings Technology Metals Ltd (ASX: HAS), up 41%; and Lynas Rare Earths Ltd (ASX: LYC), whose share price is up 86% since this time last year.

See what we mean?

What the heck are rare earths anyway?

To start off with, rare earths aren't really all that rare as far as how much of them you can find across the Earth. But they earn their name because they're generally only found in very low levels of concentration. Meaning to get to them, companies like the ASX shares listed above need to sort through a whole bunch of ore first. And then laboriously filter the choice bits out.

Depending on who you ask, there are either 15 or 17 rare earth elements (REEs).

Regardless of how many elements we choose to put into the category, you'd be hard-pressed to find anyone who can name them all. Or even a few.

Praseodymium anyone? How about gadolinium? Or maybe ytterbium?

We'll leave off the rest of the list. (To impress your friends, you can find that list here.)

Yet, while they're hardly household names, rare earths are critical to almost every high-tech gadget you own. Including the smartphone or computer you're probably using to read this right now.

They're also important to the move to green energy, used in the construction of things like wind turbines.

But there's an arguably bigger reason ASX shares working in the rare earths space are frequently in the spotlight.

That's because these elements are crucial to modern militaries across the world. We're talking satellites, missiles, submarines, high-tech ground vehicles, and all manner of aircraft here.

Just how dependent are these military machines on rare earths?

Very.

Roughly 418 kilograms of rare earths are used to make a single F-35 Lightning II fighter jet. And some 4,100 kilograms are required before an SSN-774 Virginia-class submarine can head off to duty, according to a 2013 United States Congressional Research Service report.

Why are so many ASX shares involved with rare earths?

While the West is moving to break China's stranglehold, the Middle Kingdom still controls some 70%-80% of the REE market.

As tensions with China have increased over the past few years, the United States and other nations have been increasingly turning to Australia to fill any potential shortcomings in their REE supplies.

And Australia is well placed to do so.

According to the CSIRO's Critical Energy Minerals Roadmap, Australia has the sixth-largest deposit of economically viable rare earth elements of any nation on the planet.

And the ASX shares listed above are working hard to secure those crucial resources.

The post What even are rare earths and why are ASX shares with exposure always in the spotlight? appeared first on The Motley Fool Australia.

The ASX rare earths and strategic metals explorer is gaining today even as the All Ordinaries Index (ASX: XAO) dips 0.34% into the red.

Factoring in today's intraday gains, the Australian Strategic Materials share price is up nearly 12% since the closing bell last Wednesday.

What's driving ASX investor interest?

The Australian Strategic Materials share price has closed higher on 4 of the last 5 days of trading.

The most recent price-sensitive news from the miner was released after market close on Tuesday.

In that release Australian Strategic Materials reported that it had signed a Joint Statement of Cooperation with the Korean Mine Rehabilitation and Resource Corporation (KOMIR).

According to the Joint Statement of Cooperation, Australian Strategic Materials and KOMIR will work together to expand the use of rare earths and critical metals in Korea.

The 2 companies will also cooperate to develop import opportunities to secure the supply of rare earths and critical metals for Korea's industries. The miner said this includes supplies for strategic stockpiling.

Commenting on the agreement, Australian Strategic Materials' managing director, David Woodall said:

This builds on the cooperative and collaborative relationship between Korea and ASM, creating further opportunities to engage on the strategic issue of critical minerals and metal supply.

This Joint Statement of Cooperation is another firm sign of Korea's commitment to securing its supply of critical metals and to working with ASM to deliver an outcome that is beneficial to the Korean supply chain.

Woodall said that Australian Strategic Materials will start producing critical metals at its Korean Metals Plant in 2022.

Australian Strategic Materials share price snapshot

The Australian Strategic Materials share price is up an impressive 132% over the past full year. By comparison the All Ords has gained 10% over that same time.

Over the last month, shares in Australian Strategic Materials have gone the other direction, down 16%.

The post Here's why the Australian Strategic Materials (ASX:ASM) share price has leapt 12% in a week appeared first on The Motley Fool Australia.

Shares in critical metals producer Australian Strategic Materials Ltd (ASX: ASM) are losing ground and are now down 11% on the day at $10.13.

ASM shares lost territory directly from the open as investors responded poorly to an announcement on the company's Dubbo project optimisation. Here are the details.

What was announced?

ASM confirmed "strong financial results as an outcome of the Optimisation Study and Enhanced Project Addendum" for its Dubbo project.

The study was based on Alkane Resources Ltd's optimisation study that was released to the market way back in 2018.

ASM advised the revised financials are based only on the initial ore reserve of 18.9 million tonnes (Mt). Substantial additional measured and inferred mineral resources beneath the ore reserve are excluded from this study, per the release.

The updated base case for the 20-year life of mine is expected to achieve a pre-tax net present value (NPV) of $2.361 billion on a pre-tax project internal rate of return (IRR) of 23.5%.

ASM notes that this is a 6% improvement on the pre-tax IRR compared to the 2018 study.

The company also says that the optimisation simplifies the Dubbo Project process flow sheet, and incorporates "new operating strategies that will reduce operating costs and improve the ESG performance" of the site.

Examples of such strategies include increasing the brine concentrator capacity, thereby halving water consumption; refurbishment of the railway line to simplify project logistics and provide new categories of local entry level jobs; and the development of a "chlor-alkali plant" – reducing the cost of reagents and their transportation.

According to ASM, these strategies facilitate ESG benefits by "reducing water consumption, reducing the handling and quantum of process chemicals, and reducing the number of trucks on local roads, required for the Dubbo Project".

 Management commentary

Speaking on the announcement, ASM Managing Director, David Woodall said:

I am delighted with the outcomes of the Optimisation Work which demonstrates the financial strength of the Dubbo Project and ASM's focus on a sustainable future delivering improved performance and ESG outcomes. The Optimisation Work supports a strong go forward case and is an exciting development for ASM, our partners and shareholders. The Optimisation Work confirms we have a project that can integrate into our metals business to create an alternate, sustainable, secure and stable long-term supply of critical metals and oxides. This places ASM in an exceptional position in the critical metals value chain, as the vertically integrated owner of a globally significant polymetallic resource in Dubbo, and the capability to produce critical metals from this resource to the highest environmental standards.

In the past 12 months, the Australian Strategic Materials share price has soared over 137% after rallying a further 58% this year to date.

Over the last month, it has reverted back down sharply and now trades 22% in the red over that time, and is a further 19% down over the last week of trade.

The post Australian Strategic Materials (ASX:ASM) share price loses 11% despite 'strong financial results' appeared first on The Motley Fool Australia.

The Australian Strategic Materials Ltd (ASX: ASM) share price is still in the freezer as the company prepares to announce potentially exciting study results.  

The company froze the trading of its shares before the market opened on Friday. Since then, the Australian Strategic Materials share price has been sitting at $11.40.

Let's investigate what the market might hear from the speciality metals and oxide producer when it exits the trading halt.

What's going on?

Plenty of eyes are on Australian Strategic Materials share price today after the company flagged it would either release highly anticipated news or restart trading on Tuesday morning. Unless, of course, it extends its trading halt.

The anticipated news regards an optimisation study at the company's wholly-owned Dubbo Project – a critical pillar of its business.

In October, the company said the study's results would be released before the end of November. However, no news has been heard of it yet.

The study is aiming to update previous findings at the project with current pricing and design improvements.

Following its completion, Australian Strategic Materials hopes to start moving towards the next phase of the project's development.

The Dubbo Project's said to be a globally significant resource of rare earths, zirconium, niobium, hafnium, tantalum, and yttrium.

According to the company, the metals play an important role in future technologies, particularly in the clean energy and transportation sectors.

The company expects the project will see it becoming one of few critical metal oxide supply options outside of China.

It plans to process the project's productions at its critical metals plants, located in key technology markets. The first plant will be in South Korea.

Australian Strategic Materials share price summary

Right now, the Australian Strategic Materials share price is trading 73% higher than it was at the start of 2021. However, it has fallen 6.4% since this time last month.

At its current share price, the company has a market capitalisation of $1.59 billion.

The post Why is the Australian Strategic Materials (ASX:ASM) share price halted? appeared first on The Motley Fool Australia.

The S&P/ASX 300 Index (ASX: XKO) is climbing in early afternoon trade, after spending the morning in negative territory.

At the time of writing, the ASX 300 is up 0.32% to 7,411 points. The index is now in the green for the past month, erasing the 4.5% loss during the "September effect".

Let's take a look at which ASX companies are leading the charge today.

Ioneer Ltd (ASX: INR)

The Ioneer share price is rocketing 7.75% to 69.5 cents, despite no price-sensitive news from the emerging lithium-boron company.

A reason for its shares accelerating could be that the price for lithium carbonate has accelerated in recent memory. Currently, the battery-making ingredient is fetching for a record high of 195,000 Chinese yuan a tonne. This represents a 6.8% increase week-on-week.

Paladin Energy Ltd (ASX: PDN)

Also in the spotlight today is the Paladin share price, up 5.75% to 92 cents apiece.

The uranium company's shares are continuing to push higher following strong positive investor sentiment in the sector.

The spot price for uranium has soared further to US$48.10/lb at the time of writing. This means that the yellowcake has lifted almost 65% in a year.

Imugene Limited (ASX: IMU)

Another strong performer on the ASX 300 so far today is the Imugene share price, which is up 4.82% to 43.5 cents.

The Australian immuno-oncology focused biopharmaceutical company hasn't released any market-sensitive news to the ASX since late last month. However, its shares have tumbled from reaching an all-time high of 51.5 cents on 24 September.

And which ASX 300 companies are heading south?

Australian Strategic Materials Ltd (ASX: ASM)

Sinking today is the Australian Strategic Materials share price, down 5.52% to $10.26.

The rare earth metals company is being sold off by investors as they take profit off the table. Ioneer shares are hovering above 60% for 2021 and are up almost 170% over the past 12 months.

Propel Funeral Partners Ltd (ASX: PFP)

Also sliding on the ASX 300 today is the Propel Funeral share price, down by 4.98% to $4.20.

The Australian-based company announced it has completed a $52.2 million institutional placement.

The capital raising efforts will see 12.25 million new shares being added at an issue price of $4.10 a pop. In addition, Propel Funeral plans to raise a further $10 million through a share purchase plan, opening on 27 October.

The post Which ASX 300 shares are the biggest winners and losers on Tuesday? appeared first on The Motley Fool Australia.

The S&P/ASX 300 Index (ASX: XKO) is sliding again today, adding to yesterday's 0.27% loss.

During afternoon trade, the ASX 300 is down a further 0.33% to 7,278.9 points. This means that the index has dropped around 3.5% since the start of September.

Let's take a look at which ASX companies are the strong performers today.

Australian Strategic Materials Ltd (ASX: ASM)

The Australian Strategic Materials share price is on the rebound, following a drop of 6% since Friday.

The rare earth metals company hasn't released any news in the past few weeks. However, a strong gain in the commodities markets could be a catalyst for its recent rise.

The spot price for rare earths mineral, neodymium, is fetching around 777,500 Chinese yuan per tonne, up 24.9% year-to-date.

Perseus Mining Ltd (ASX: PRU)

The Perseus share price is pushing higher with a 4.50% gain to $1.56.

The gold miner released an update today advising that it plans to hold a quarterly investor webinar on 21 October. Furthermore, Perseus will also provide more information on its Edikan and Yaouré exploration activities next week.

Investors appear to be buying up Perseus shares in expectation that positive results will come.

Zimplats Holdings Ltd (ASX: ZIM)

Also flying higher is the Zimplats share price, up 4.25% to $21.33 apiece.

The mining company hasn't provided the market with any new information in the past few weeks.

A possible catalyst for the upward trend could be the improvement in platinum prices since last Tuesday.

Now, let's take a look at the weaker ASX 300 companies.

Sezzle Inc (ASX: SZL)

Falling today is the Sezzle share price, down 6.46% to $5.65, with no new market announcements from the company.

Investors have sold off the buy-now pay-later (BNPL) company's shares after registering a 20% gain over the last 3 days.

Just last week, United States retail giant Target announced the launch of a BNPL offering in partnership with Sezzle. This service will be used to attract customers with affordable payment solutions.

Target is the eighth largest retailer in the United States and has a network of more than 1,909 stores. The deal could have a huge impact on Sezzle's bottom line for the future.

Yancoal Australia Ltd (ASX: YAL)

Another company's shares being weighed down by investors today is the Yancoal share price, down 5.10% to $3.91.

The energy producer's shares frequently make the ASX 300 headlines, bouncing from the top gains to biggest losers.

The spot price of coal has taken a break from its wild rise over the past 12 months, currently at US$244.50 a tonne.

It's worth noting that a number of ASX energy sector companies are also slipping into the red today. The S&P/ASX200 Energy Index (ASX: XEJ) is down 1.60% to 8,922.4 points.

The post Which ASX shares are the top movers in the ASX 300 today? appeared first on The Motley Fool Australia.

The Australian Strategic Materials Ltd (ASX: ASM) share price is climbing higher in morning trade and is now changing hands at $10.70 apiece. That's 4.9% up on yesterday's close.

Yet the company has been sailing choppy waters these past few months, having slipped almost 22% off a high of $13.66 on 26 August.

That's a curious plunge from a company whose share price had rallied more than 70% in August alone before the drop.

Australian Strategic Materials shares are also leading the loss in the broader sector, with the S&P/ASX Materials Index (XMJ) slipping just 9% during this time.

What's been pushing the Australian Strategic Materials share price lower?

There's been no market sensitive information from the company lately that appears remarkable on its share price.

However, the price of neodymium, the rare earths metal that Australian Strategic has exposure to, has traded sideways the last 2 months.

Prior to this, the price of neodymium, one of the most common rare earths elements, had soared 36% from June. It also hit all-time highs of $186,713/tonne earlier in the year before cooling off slightly.

However, since August, it has levelled and currently trades at $163,506/tonne – no real change over the period.

It seems the price of neodymium is impacting the company's share price, as Australian Strategic is an ASX resource share that produces the commodity.

Taking a step back, it also appears there is weakness in the broader sector as well.

As mentioned, the S&P/ASX Materials Index has slipped into the red lately and is down 5% this past month.

The index is a good proxy to gauge performance of the wider industry and, based on these measures, it appears there have been headwinds lately.

ASX 200 materials shares have been on a march down since August when they were trading at 5-year highs.

Unsurprisingly, investors are reflecting this sentiment too. The VanEck Rare Earth/Strategic Metals ETF (NYSEARCA: REMX) – a good proxy to check the growth of shares in the industry – is down 9% this past month.

So it appears there is a rotation of capital away from ASX rare earths shares that is impacting the wider sector alongside weakness in commodities markets.

Investors just aren't chasing ASX materials shares right now. The Australian Strategic Materials share price is set to be on the receiving end of these headwinds.

Australian Strategic Materials share price snapshot

It's certainly not all doom and gloom for the Australian Strategic Materials share price. Zooming out over the longer-term, it has climbed 66% this year to date and 272% in the last 12 months.

This are impressive returns that far outpace the industry's return and the S&P/ASX 200 Index (ASX: XJO)'s gain of about 20% in that time.

The post Why has the Australian Strategic Materials (ASX:ASM) share price tumbled 22% since August? appeared first on The Motley Fool Australia.