Lynas Rare Earths Ltd (ASX: LYC) is quietly building momentum, with its share price up nearly 29% over the past 12 months. While the broader ASX 200 has also delivered a healthy gain, Lynas’s performance stands out in the materials sector, particularly given the global focus on rare earths.

So, what’s behind this strong run, and does the company still offer further upside from here?

Rare Earths Are in the Spotlight

Lynas remains one of the few rare earths producers operating outside China—a position that has long attracted attention from investors looking for geopolitical diversification in resource supply chains.

The company’s Mt Weld mine in Western Australia is one of the world’s richest known rare earth deposits. In addition to its mining operations, Lynas operates processing facilities in both Malaysia and Kalgoorlie, which form key components of its vertically integrated production chain.

As supply chain independence becomes a priority for western nations, Lynas’ unique position is becoming even more strategic.

Commissioning Milestones and Revenue Trends

In recent quarterly updates, Lynas highlighted important milestones, including the commissioning of its Heavy Rare Earth separation circuit. Once fully operational, this development could make Lynas the only commercial producer of separated heavy rare earth products outside China.

However, despite this long-term potential, near-term revenue has been more volatile. Gross sales revenue for Q3 FY25 came in lower than the previous quarter but was still above the same period last year. While this has led some investors to question short-term earnings potential, others see the recent revenue dip as a temporary pause in an otherwise strong long-term growth trajectory.

Is There More Growth Ahead?

Looking forward, the outlook for rare earths—particularly those used in electric vehicles, renewable energy technologies, and advanced electronics—remains positive. With increased global demand and a growing focus on securing critical mineral supply, companies like Lynas are positioned to benefit.

From a valuation perspective, some investors may see the recent share price gains as a reason to lock in profits. However, others believe that the company’s recent investments, technological advancements, and geopolitical relevance could support further upside.

Pristine Gaze Perspective

At Pristine Gaze, we believe Lynas Rare Earths represents a key player in the evolving landscape of strategic minerals. Its integrated supply chain, proven resource base, and continued development efforts give it a strong foundation. Still, investors should remain aware of the risks associated with commodity pricing and political sensitivities in the regions where it operates.

Disclaimer

This article reflects the views of Pristine Gaze and is for informational purposes only. It does not constitute financial advice. Please consult a licensed financial advisor or conduct your own due diligence before making investment decisions.

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