The Lynas Rare Earths Ltd (ASX: LYC) share price has outperformed its benchmarks in the new financial year.
In the last three weeks of trade, investors have bid the share 22% higher.
In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has risen less than 1% over the past month of trade.
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What's up with the Lynas share price?
Lynas shares caught a bid on 13 July and have surged ever since.
It's curious because as commodity markets such as oil and gas cool off, rare earths have followed suit. Their price on global markets is down 13% on the month.
Despite this, investors have piled into Lynas shares since mid-July, with trading volumes shooting higher again yesterday following a company announcement.
The miner advised of a $500 million project to expand capacity at its Western Australia Mt Weld mine and concentration plant.
As The Motley Fool reported, global demand for NdFeB [neodymium] magnets is expected to grow from 130,000 tonnes in 2020 to 265,000 tonnes by 2030.
Lynas' new project is fully funded from cash flow. The company's initial expansion plans have already been scoped, with Lynas looking to produce 12,000 tonnes per annum equivalent of neodymium and praseodymium in 2024.
Prior to this, the company's Q2 FY22 earnings report was a positive catalyst that saw shares head back to longer-term price ranges.
In the report, Lynas grew cash receipts to a record $351 million, also 34% up on the same time last year. This was recognised with sales revenue of roughly $295 million.
In the last 12 months, the Lynas share price has clipped a 23% gain.
