businessman sitting at a desk pointing to report on laptop screen

Read on to learn more about the five top rare earth stocks on the ASX by market cap.

2021 was an exciting year for rare earths companies and the sector as both demand and prices for the materials remained high. Analysts are showing plenty of optimism for the rare earths market in 2022.

Rare earth elements are key metals for high-tech applications, including permanent magnets, which have widespread potential, especially in the technology and electric vehicle sectors.

One major trend expected in 2022 is that end users will be looking to secure rare earth supplies from sources outside of China. That’s good news for rare earths companies in Australia.

For those interested in jumping into the market, here's a look at the five largest ASX-listed rare earths stocks by market cap. Read on to learn more about these companies and how they are positioning themselves in the rare earths sector. Data for this article was gathered via TradingView's stock screener on January 13, 2022.

1. Lynas

Current price: AU$11.24; market cap: AU$10.14 billion

Lynas (ASX:LYC) is the largest rare earths developer in Australia with a market cap of more than AU$10 billion. Focused on integrated delivery, Lynas is a miner and supplier of high-grade rare earths. According to the company, its Mount Weld project in Western Australia is one of the highest-grade rare earths mines in the world.

In 2011, Lynas commissioned its Mount Weld concentration plant, located just under 2 kilometers from the Mount Weld mine. Subsequently, in 2014, the critical metals miner established the Lynas Advanced Materials Plant (LAMP), an integrated manufacturing facility near the Port of Kuantan in Malaysia. The LAMP was designed for the separating and processing of rare earth materials.

Reuters states that Lynas’ share price more than doubled in 2021, its best-performing year since 2017.

2. Iluka Resources

Current price: AU$11.16; market cap: AU$4.72 billion

Iluka Resources (ASX:ILU) has decades of experience in the mining industry, mostly in the production of zircon and the high-grade titanium dioxide feedstocks rutile and synthetic rutile. However, in recent years Iluka has developed an emerging portfolio of rare earths operations and projects.

Iluka’s Eneabba operation in Western Australia involves the extraction, processing and sale of a strategic monazite-rich mineral stockpile. The company is currently working on a feasibility study for a fully integrated rare earths refinery at Eneabba, which would produce separated rare earth oxides.

Iluka’s Wimmera project in the Australian state of Victoria hosts a fine-grained heavy mineral sands orebody that has the potential to provide long-term supply of zircon and rare earths. The rare earths-bearing minerals within this deposit are similar to the stockpiled minerals at Eneabba, meaning that in the future Wimmera could supplement feed to the downstream refining facility.

3. Arafura Resources

Current price: AU$0.23; market cap: AU$348.84 million

Arafura Resources (ASX:ARU) is advancing on the feasibility-stage Nolans neodymium and praseodymium (NdPr) project in the Northern Territory. The “shovel-ready” project has support from key government ministers.

Arafura has plans for Nolans to be a vertically integrated NdPr operation with processing facilities on site. The company believes the project has the potential to become a major supplier of critical metals to the high-performance neodymium (NdFeB) permanent magnet market.

In 2020, Arafura reported a “major” increase in mine life for the Nolans project thanks to an updated mine design. Nolans’ ore reserves increased by 54 percent to 29.5 million tonnes, supporting a 33 year mine life. The company expects to make a production decision in 2022.

4. Northern Minerals

Current price: AU$0.05; market cap: AU$262.49 million

Northern Minerals (ASX:NTU) is working to be a supplier of ethically produced rare earth metals and separated products. The country has a large land package comprised of three projects: the Browns Range and John Galt projects in Western Australia and the Boulder Ridge project in the Northern Territory.

At its wholly owned Browns Range project, Northern Minerals has built a pilot plant to test a number of deposits and prospects that contain high-value dysprosium and other heavy rare earths hosted in xenotime mineralization.

In early 2021, Northern Minerals raised AU$20 million through a financing to move its projects forward. At the close of the year, the company received a AU$4.3 million rebate from the Australian Tax Office as part of a government research and development program.

5. Vital Metals

Current price: AU$0.053; market cap: AU$220.77 million

Headquartered in Sydney, Vital Metals (ASX:VML) commenced operations at Northwest Territories-based Nechalacho in June 2021; it's billed as Canada’s first — and North America’s second — rare earths-producing mine. Vital Metals also holds the high-grade Wigu Hill rare earths project in Tanzania.

The company’s goal is to become the lowest-cost producer of mixed rare earth oxide outside of China. Vital aims to produce a minimum 5,000 tonnes of contained rare earth oxide at Nechalacho by 2025.

In October 2021, Vital Metals signed a memorandum of understanding with Ucore Rare Metals (TSXV:UCU,OTCQX:UURAF) that will see Vital supply at least 500 tonnes per annum of cerium-depleted mixed rare earth chemical concentrate to Ucore’s ALASKA2023 endeavor beginning in the first half of 2024.

This is an updated version of an article originally published by the Investing News Network in 2018.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Global News

Top News

Global News