MENU

The Lynas Corporation Ltd share price is now up 65% in 2017

Shares in rare earths miner Lynas Corporation Ltd (ASX: LYC) are now up 65% in 2017 as rare earth prices recover thanks to cut backs in production across its main Chinese producers.

The stock traded above $2 per share in 2011, yet hit just 5 cents per share this year as the former market darling nearly collapsed as its Malaysian operations struggled with environmental protests, regulatory concerns, operational delays and the falling rare earths price.

The shares may now be attracting some bargain hunters after the company posted record sales and positive cash flow of $69.3 million and $11.6 million for the quarter ending March 31 2017.

Its key product is neodymium that is used industrially as a component in magnetic metals that can end up in microphones, loudspeakers and computer hard disks among other common products.

Lynas stated that for the most recent quarter neodymium prices increased around 10% from US$31 to US$34 per kilo and much of the company’s success will depend on the direction of neodymium prices.

The company has $24.3 million in cash on hand and if it is able to deliver growing cash flows over several years it may offer strong returns. However, this company is only for investors who are prepared to take on a high degree of risk given its reliance on the mysteries of rare earth prices and mixed track record.

Rich listers know the power of dividend shares!

In FY 2018 share market investors are staring down the barrel of ballooning global debt and potential geopolitical powder keg. But thankfully one Foolish expert is revealing 5 of his favorite dividend payers for wealth-creating income whatever the global weather...

But you must act now. This updated report is available for a limited time only, and your copy is 100% free. So don't miss out!

Simply click here to receive your free copy of "Our Top 5 ASX Dividend Shares to Earn You Money in 2018" right now.

Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.