Strong demand for ASX rare earths stocks due to healthy appetite

Rare earths stocks have seen a surge of interest recently, with mining billionaire Gina Rinehart making strategic equity moves in the sector. Rinehart’s acquisition of a stake in US producer MP Materials, along with her increased investment in Lynas, has fueled optimism in a sector that has been struggling.

Analysts are also predicting a price rebound in the rare earths market in the second half of the year, further boosting sentiment in the industry. Shares of Lynas Rare Earths surged by as much as 5.9% following Rinehart’s increased stake in the company.

One standout winner on the ASX was DY6, which reported rock chips grading up to 3.22% rare earths at its Machinga project. The company is now refining targets for the next phase of drilling, leading to a more than 35% increase in its share price for the day.

Other rare earths stocks also saw gains, with Lycaon Resources, Godolphin Resources, and Nimy Resources all posting positive movements in Friday trade. Additionally, Cyprium Metals announced the appointment of industry veteran Scott Perry to its board, resulting in a nearly 21% increase in its share price.

Firetail Resources, which listed in April 2022, reported promising results from a drilling campaign at its Picha project in Peru. The company’s share price was up more than 17.6% following the announcement. Overall, the rare earths sector is showing signs of a potential resurgence, with investors taking notice of the sector’s renewed potential.