These were the best performing ASX 200 shares in July

The S&P/ASX 200 Index (ASX: XJO) was on form again in July. The benchmark index recorded a 1.1% gain to end the month at 7,392.6 points.

While a good number of shares climbed higher with the market, some climbed more than others. Here's why these were the best performing ASX 200 shares in July:

Perenti Global Ltd (ASX: PRN)

The Perenti share price was the best performer on the ASX 200 last month with a 35.8% gain. There were a number of catalysts for this strong rise. This includes its Barminco business finalising a $280 million four-year contract with Panoramic Resources Limited (ASX: PAN) and a bullish broker note out of Macquarie. In respect to the latter, Macquarie put an outperform rating and 95 cents price target on its shares. The broker believes Perenti's work in hand and order book will support strong free cash flow and underpin a generous dividend.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price wasn't far behind with 34.9% gain. Investors were fighting to get hold of the airport operator's shares after it received an $8.25 cash per share takeover offer from a consortium of infrastructure investors. This offer represented a 42% premium to its last close price at the time and valued the airport operator at $22.3 billion. However, Sydney Airport rejected the offer, noting that it was made during a global pandemic, which has deeply affected the aviation industry and the Sydney Airport share price. Investors appear optimistic an improved offer will be made.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was a strong performer in July and recorded a 28.5% gain. A good portion of this gain was made in the final week of the month following the release of its fourth quarter update. That update revealed that Lynas achieved a 79.7% increase in quarterly neodymium and praseodymium (NdPr) production to 1,393 tonnes during the three months. Together with the near doubling of its average realised price, Lynas reported a 389% increase in quarterly sales revenue to $185.9 million.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price was on form again and stormed 22% higher in July. This is despite the lithium miner's shares spending the latter few days of the month in a trading halt. Investors were buying the company's shares after investor sentiment in the industry increased further following a series of positive quarterly updates from lithium miners. Those updates revealed strong demand and pricing for lithium.