Shares in Lynas Rare Earths Ltd (ASX: LYC) continue to charge higher, posting the strongest gains among the S&P/ASX 200 Index (ASX: XJO) on Monday, with shareholders having more than tripled their money this year.
Lynas shares were 5.4% higher in early trade, at one stage hitting a new 12-month high of $19.14, before settling slightly to be 97 cents higher at $19.03.
The stock is up more than threefold from its low point of $6.16 in January this year, with the company valued at $18.2 billion at the close of trade on Friday.
The company's share price does not appear to have been negatively affected by speculation published by Reuters in the past week that China and Malaysia could potentially team up to build a new rare earths project in Malaysia, which would compete with Lynas' Malaysian processing plant.
The Reuters article, quoting unnamed sources, stated that China was willing to swap its rare earths processing technology in return for access to Malaysian resources, marking a significant policy shift for China, which has previously banned the export of its processing technology.
China dominates the global rare earths trade and earlier this year implemented export restrictions on the minerals, which are vital to the defence, automotive, and clean energy industries.
Lynas well-placed to supply the market
Lynas shares are up strongly in recent months despite no specific news flow from the company, apart from a briefing to a Queensland investor summit on September 22.
The presentation said the company was well-placed, with a number of growth projects in the pipeline.
It said it was the world's only producer of separated HRE oxide outside of China, with plans to deliver an expanded product offering.
It also had the world's largest single rare earths separation plant in Malaysia, with an expanded nameplate capacity of 10,500 tonnes per annum.
Growth projects in its Towards 2030 strategy included continued exploration and mine plan optimisation at its Mt Weld mine in Western Australia, the development of value-added specialty rare earths manufacturing capabilities, and a plan to partner with companies with proven expertise in rare earth metal and magnet production.
Lynas raised $750 million in a capital raise in August, with shareholders who took part in the raise at $13.25 per share already sitting on substantial gains.
Lynas posted a net profit of $8m for FY25 in late August, down from $84.5 million the previous year, on revenue of $556.5 million, up from $463.3 million.
Managing director Amanda Lacaze said at the time the company was "ideally positioned to benefit from the significant increases in demand from current magnet makers, magnet buyers and new magnet maker projects''.
