The Lynas share price has plunged 6% today! What's going on?

Why are Lynas shares getting a hammering this Monday?

| More on:
A boy plunges right to the bottom after doing a bomb into the pool.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been another dreadful day of trading for ASX shares so far this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has lost a depressing 1.47% and is now back under 7,100 points. But the Lynas Rare Earths Ltd (ASX: LYC) is suffering a worse fate so far. As it currently stands, Lynas shares have lost a nasty 6.44% from last week's closing price of $9.01 and are now trading at $8.43 each.

So what's going on with Lynas shares this Monday?

Well, we can't be certain. There hasn't been much in the way of news or announcements out from Lynas in almost a month. The last piece of major news we got out of the company came back on 12 April. That was when Lynas released a quarterly report for the first three months of 2022. As we covered at the time, this report announced record quarterly sales revenue of $327.7 million, as well as a 17.5% rise in total rare-earth oxide production. Investors reacted positively at the time.

Perhaps today's move just reflects a general market distaste for green metals companies like Lynas. Indeed, we are seeing some pretty major falls across the board in this space. Take Pilbara Minerals Ltd (ASX: PLS). The Pilbara share price has lost more than 6% so far today. It's the same with Neometals Ltd (ASX: NMT) and Core Lithium Ltd (ASX: CXO).

So it seems investors don't want anything to do with green metals shares today. And The Lynas share price looks to have been swept up in this trend.

Lynas shares are now down nearly 15% over the past month, as well as down 27% since the company touched a new 52-week high of $11.59 in early April.

At the current share price, Lynas commands a market capitalisation of around $8.4 billion.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Female miner smiling at a mine site.
Resources Shares

Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Resources Shares

After lifting its price target, Macquarie now expects 36% upside from this ASX mining stock

The precious metals producer released better-than-expected production guidance.

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »

mining asx shares represented by miner writing report on clipboard
Resources Shares

This ASX 200 miner is ramping up copper output as prices reach all-time highs

Copper production leads quarterly update.

Read more »