Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up a further 4% to $3.87. This counter drone technology company's shares have been on fire this week after it announced a major increase to its research and development capabilities. Management revealed that it will make a $13 million+ initial investment into a brand new 3,000sqm production facility in Sydney's Alexandria. This will expand its own annual production capacity to $900 million by mid-2026 and a combined total annual manufacturing capacity to $2.4 billion by the end of 2026. DroneShield shares are now up over 400% since the start of the year.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is up 12% to 15.7 cents. This is despite there being no news out of the mineral exploration company. However, it is worth noting that rare earths shares are racing higher again today after Apple (NASDAQ: AAPL) announced a US$500 million deal With MP Materials (NYSE: MP). This will see the two parties develop a recycling line for rare earth materials. Meteoric Resources' flagship Caldeira Rare Earth Ionic Clay Project is the world's highest grade ionic absorption rare earth deposit.

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is up 7% to 32.2 cents. Investors have been buying the miner's shares after it announced its expansion into gold. Mount Gibson has signed a binding conditional agreement with Northern Star Resources Ltd (ASX: NST) to acquire its 50% interest in the Central Tanami Project Joint Venture (CTPJV) in the Northern Territory. Mount Gibson Iron is paying $50 million for the stake. The company's CEO, Peter Kerr, said: "This acquisition represents a compelling opportunity to enter the gold sector at an attractive price, with the sector having strong fundamentals. Involvement in the Central Tanami Gold Project provides Mount Gibson with an opportunity to leverage the success of its Koolan Island iron ore operation to establish the foundations of a gold production business."

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is up almost 5% to 93.7 cents. This payments company's shares are rebounding on Wednesday after tumbling yesterday amid concerns over the RBA's plan to scrap card surcharge fees. Tyro's CEO, Jon Davey, doesn't believe this is bad news. He said: "We welcome the RBA's proposed payments updates, which aim to increase transparency and lower card costs for consumers and merchants. The RBA's proposal supports a holistic view of payments reform that benefits small businesses and creates opportunities for Tyro. We encourage the RBA to move with speed."

The post Why Droneshield, Meteoric Resources, Mount Gibson, and Tyro shares are charging higher appeared first on The Motley Fool Australia.

This impressive one-day gain brings Lynas' year-to-date share price increase to 48%, much to the delight of its shareholders.

In comparison, the All Ordinaries Index (ASX: XAO) slipped 0.073% on Friday and has only managed a modest 4.2% rise since the beginning of the year.

Curiously, Lynas didn't release any company-specific news to trigger Friday's rally.

Instead, there was a big development in America which sparked investor interest in the rare earths producer.

What happened?

Over in the US, fellow rare earths miner MP Materials (NYSE: MP) made headlines on Thursday after announcing a deal with the Pentagon, which will acquire a 15% stake in the company.

The agreement is expected to facilitate MP Materials' expansion, including the development of a new facility for manufacturing rare earth magnets.

Investors responded with fervour, sending MP Materials' share price soaring by about 50% during Thursday's trading session in the US.

So what?

MP Materials operates the only rare earths mine in America – and these critical elements are becoming increasingly important in the modern-day world.

Rare earths consist of 17 elements essential to a wide range of industries, including clean energy, automotive technology, consumer electronics, and robotics.

Of particular importance are two elements: neodymium (Nd) and praseodymium (Pr).

These are vital components in the production of permanent magnets which power electric vehicles (EVs), wind turbines, e-bikes, and various consumer electronics.

And Lynas has plenty of both.

But here's where it really gets interesting.

China produces about 95% of all the world's rare earth magnets and processes some 90% of all rare earth metals.

This concentrated supply has prompted Western nations to reduce their dependence on China and seek new sources of rare earths for their own economies.

Globally significant

Lynas owns the Mt Weld mine in Western Australia which is widely regarded as one of the premier rare earths deposits worldwide.

In addition, the company also operates the world's largest rare earths processing facility in Malaysia.

Here, it produces separated rare earth materials for export to international markets such as the US.

In essence, Lynas claims to be the only major producer of separated rare earth materials outside of China.

More upside to come?

Just before the major news out of the US, leading broker Macquarie Group Ltd (ASX: MQG) weighed in on Lynas.

Interestingly, Macquarie saw limited further upside for the stock after its share price already rallied 27% this year, prior to Friday's 16.65% ascent.

As a result, the broker issued an 'underperform' rating on Lynas with a price target of $8.00.

This projection equates to 17.27% downside from Friday's closing price of $9.67.

It remains to be seen whether the Pentagon's deal with MP Materials – and the possible strategic implications for Lynas – will prompt Macquarie to revise its view.

We will have to wait for the broker's next report to find out.

The post Up 48% this year, does Macquarie think Lynas Rare Earths has further to run? appeared first on The Motley Fool Australia.

At the time of writing, the rare earths producer's shares are up 1% to $5.89.

Why are Lynas shares rising?

Investors have been bidding Lynas shares higher this morning after the company confirmed media reports that it has been in merger talks with a US counterpart.

This morning the company announced the following in response to media speculation:

Lynas confirms it has held confidential discussions with MP Materials Corp (NYSE: MP) regarding a potential transaction.

MP Materials owns and operates Mountain Pass, which is the only integrated rare earth mining and processing site in North America. Its mission is to restore the full rare earth supply chain to the United States of America.

During the third quarter of 2023, it reported 10,766Mt of REO production.

As of Friday's market close on Wall Street, MP Materials had a market capitalisation of A$4.7 billion. This is a touch lower than the Lynas market capitalisation of A$5.45 billion.

This means that if the two rare earths companies were to merge their operations, they would form a $10.15 billion industry giant.

However, it is worth noting that there is no guarantee that Lynas and MP Materials will merge their businesses in the future. Management advised that the transaction discussions between the two parties "are not ongoing."

The company's management then highlighted its organic growth plan. It concludes:

Lynas is implementing a strong organic growth plan. In addition, Lynas continues to seek opportunities to use our proven expertise to build scale, improve market functioning and add value for shareholders.

Despite today's gain, Lynas shares are still down a disappointing 35% over the last 12 months.

The post Lynas shares rise on US merger talks appeared first on The Motley Fool Australia.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

A tough session is expected for the Australian share market on Monday despite a strong finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.7% lower this morning. On Friday on Wall Street, the Dow Jones was up 0.35%, the S&P 500 rose 1.1%, and the Nasdaq jumped 1.75%.

Oil prices drop

It could be a poor start to the week for ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 2.1% to US$72.28 a barrel and the Brent crude oil price was down 1.75% to US$77.33 a barrel. Strong U.S. jobs data reduced the odds of imminent interest rate cuts, which traders think could dampen crude oil demand.

Lynas linked with mega merger

Lynas Rare Earths Ltd (ASX: LYC) shares will be on watch today amid news that the rare earths producer has been in merger talks with New York listed Mp Materials Corp (NYSE: MP). According to the AFR, the two largest rare earths producers outside China have been talking but are not currently. Though, Lynas reportedly said that it is not ruling out a deal in the future.

Gold price falls

It is looking like it could be a poor start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price fell on Friday. According to CNBC, the spot gold price was down 0.8% to US$2,053.7 an ounce. The gold price dropped after the US dollar and bond yields rose following strong US jobs data.

Metcash capital raising

Metcash Limited (ASX: MTS) is widely expected to announce a capital raising this morning to fund the acquisition of Superior Food Group. According to the AFR, the wholesaler is looking to raise $300 million. Sources says that Metcash will be paying in the range of $390 million and $412 million for the food services distribution business.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.