Shares in Lynas Corporation Limited (ASX: LYC) have once again throttled the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) in today's trade, having risen another 2c or 13.3% after yesterday's 15.4% rise. The shares are now sitting at 17c after beginning the week trading at just 13c.
The rally over the last two days seems to have stemmed from the company's completed $30 million share purchase plan. As fellow Motley Fool writer Mike King highlighted yesterday, investors may now be feeling more confident that the company managed to raise enough funds to continue operations and thus, pushed prices upwards in the hope of a turnaround.
Unfortunately, this week's jump comes as just a small victory for shareholders who have otherwise watched their shares plummet nearly 70% over the last 12 months. While it is facing the overwhelming issue of declining commodity prices, it is also in desperate need to ramp up production in order to reduce its processing costs.
In fact, some analysts' predictions suggest the company needs to produce 22,000 tonnes per year while the company itself says it is on target to produce 11,000 tonnes per year.
A better bet than Lynas
In total, the company's shares have risen an astonishing 30% over the last two trading days. While there could be even greater gains just around the corner if everything goes according to plan for the company, it still remains an extremely risky bet for your money.
