Lynas Corporation is an Australian rare-earths mining company. It’s the second largest producer of separated rare earth materials and the largest outside of China, and is a favourite stock of a favourite of ours here at the Switzer Report, Julia Lee.
“My hot stock is Lynas (LYC),” said Julia.
Lynas has two major operations: a mining and concentration plant in Australia, and a refining facility offshore. Rare earth minerals are used in technology products, military weapons, batteries and even ventilators.
“Covid-19 has highlighted the vulnerabilities of the supply chain.
“Lynas owns the Mt Weld deposit in Western Australia, a processing facility at Kuantan, Malaysia and has signed a contract with the US Department of Defence for the design of a facility in Texas, US.
“Demand for rare earths is being driven by the growth in the wind energy sector, as rare earths are used in wind turbines and electric vehicles growing faster than expected and the world’s increasing dependence on technology.
“Lynas is in a good position as global firms diversify supply out of China to ensure a stable supply chain,” Julia said.
Source: Google
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