Lynas Rare Earths Ltd (ASX: LYC) shares are in the green again today after a spectacular 12% lift yesterday.
Lynas shares are currently trading for $7.45, up 1.09% on yesterday's closing price of $7.37.
The ASX rare earths stock soared 11.84% yesterday on news the company won't have to close its Malaysian processing plant — the world's largest single rare earths processing plant — in July.
Let's recap what's happening.
Image source: Getty Images
What's pushing Lynas up this week?
As we reported yesterday, Lynas announced that the Malaysian government is allowing it to continue importing and processing lanthanide concentrate until 1 January 2024.
This is six months later than was initially allowed under the licence renewal Lynas received in February.
The Malaysian government imposed the ban due to environmental concerns. It announced the change back in 2020.
Upon receiving its renewal in February, Lynas appealed the ban. The rare earths company argued it would force it to temporarily shut down the entire Malaysian facility while it waited for feedstock to become available from its new Kalgoorlie Rare Earths Processing Facility.
In its statement yesterday, Lynas said it would be reviewing further legal avenues.
As my colleague Brooke reports, ASX investors have fallen out of love with Lynas shares this year.
A number of curveballs for the miner have weighed on investor sentiment.
But the ASX share appears to be on an upward trajectory now.
Is it too late to buy Lynas shares?
Lynas shares were in the dirt for most of the first quarter of 2023, as shown above.
In March, the ASX rare earths stock kept testing its 52-week low and eventually hit rock bottom on 6 April at $6.02.
That presented one heck of a buy-the-dip opportunity, given Lynas shares have since recovered by more than 20%.
As reported in The Australian today, three brokers have now upgraded their ratings on Lynas shares.
Translation: These guys think it's not too late to buy Lynas shares.
Macquarie has raised its rating on Lynas to outperform and CLSA has raised its rating to buy.
Bell Potter has increased its 12-month share price target by 11% to $8.90.
Citi has cut its rating to neutral.
