Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years

Here's how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years

Lynas has been a very lucrative investment to have held in recent times.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published February 14, 2022 2:00 pm AEDT

For a while now, Lynas Rare Earths Ltd (ASX: LYC) shares have been an eye-catcher on the ASX boards. Even before its most recent share price run, Lynas was a company that has long attracted attention due to its unique position as not just one of the few rare earths miners in Australia, but also the largest.

It was only a few years ago that one of the ASX's largest constituents, Wesfarmers Ltd (ASX: WES), tried to buy up Lynas in full. It has been to the benefit of Lynas shareholders (and to the detriment of Wesfarmers investors) that that deal fell through.

So as we've briefly touched on, Lynas has been on an absolutely stellar share price run over the past two years. But how much money exactly has the Lynas share price made its investors? Let's dig in.

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them. — Image source: Getty Images

How rich has Lynas made its investors?

Fittingly, the lowest share price Lynas has touched over the past few years was back in March 2020, at the height of the coronavirus-induced share market crash. At the time, Lynas got down to around $1.25 a share.

Today, it's trading at $8.99 at the time of writing, having lost a nasty 3% thus far today.

That puts its gains at an approximate but very pleasing 620% since 27 March 2020.

So if an investor bought $10,000 worth of Lynas shares back then for $1.25 each, they would have picked up 8,000 shares for their efforts. Those 8,000 shares would be worth roughly $71,920 at today's pricing. Pleasing stuff indeed, if any investor was actually lucky enough to make this trade.

But it could have been a lot better. Like many ASX shares, Lynas has taken a substantial haircut over the past month or two. We only have to go back less than a month to see the Lynas share price at a new record high of $11.39 a share, a good 20% off today's pricing.

At that all-time high, those 8,000 Lynas shares would have been worth $91,120.

Needless to say, Lynas has been a very lucrative investment to have held in recent times. Especially over the past two years or so.

At the current Lynas Rare Earths share price, this ASX rare earths miner has a market capitalisation of $8.13 billion.

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