LYC is the gorilla in the room on the ASX with a current market cap of $9.3bn. Valuing LYC remains hard due to the opaque nature of its primary driver of revenue neodymium and praseodymium (NdPr) and the even less transparent Heavy Rare Earths (HRE) where it is channelling its growth. But we now believe the US government has provided the catalyst to drive the stock and sector higher. LYC is the world’s biggest rare earths miner and processor outside China, with production facilities at Mt Weld (Australia), Malaysia, and soon Texas, which will please President Trump. The company has invested nearly $2.3 billion using funds from revenue, the topical U.S. DoD, and a Japanese equity partner to boost capacity in Australia, Malaysia, and the U.S over the last 30 months in a well-timed move.
- We can see LYC trading back towards its all-time 2022 high as rare earth demand picks up.
MM is bullish towards LYC around $10
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