The Lynas Rare Earths Ltd (ASX: LYC) share price is on the radar today after the rare earths miner announced a 92% increase in its mineral resources.
Yet, its share price has slipped nearly 2% into the red on Monday to trade at $6.01 apiece at the time of writing.
As such, today's update – while positive for the company's long-term outlook – has not prevented the stock from continuing a long-term downtrend.
You can see the Lynas share price in action across the last 12 months in the chart below.
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Lynas share price down despite resource boost
In its 2024 mineral resource and reserve update, Lynas revealed a substantial upgrade in its mineral resources.
The upgrade was from 55.4 million tonnes (Mt) to 106.6 Mt at 4.12% Total Rare Earth Oxide (TREO).
Additionally, ore reserves increased by 63%, supporting a mine life of over 20 years at "expanded production rates".
The updated ore reserve purportedly supports a production capacity of 12,000 tonnes per annum of Neodymium and Praseodymium oxide (NdPr).
The reserve update also includes a 92% increase in contained Dysprosium oxide. This is an essential metal needed for high-performance magnets used in electric vehicles.
Mixed odds and ratings
Despite today's robust resource numbers, the Lynas share price has been volatile in recent weeks.
For instance, in its latest quarterly update, Lynas reported a 13.3% year on year decline in gross sales revenue to $136.6 million.
Meanwhile, total rare earth oxide production was down by more than 50%.
Even still, several brokers remain constructive on Lynas.
Bell Potter maintains a buy rating with a price target of $8.50, suggesting a potential upside of almost 41%.
Goldman Sachs also has a buy rating with a revised target of $7.00, citing Lynas' strategic focus on long-term contracts over spot market sales.
Whereas Ord Minnett described Lynas as a "safe way" to invest in the sector, given its status as the only significant producer of rare earths outside China.
Alas, these brokers are at odds with the market today, which continues to sell down the Lynas share price at the time of publication.
Foolish takeout
Lynas shares have faced significant challenges and a notable price drop over the past year.
The company's increase in mineral resources hasn't been enough to catch investor attention today. As to what it means for the long-term Lynas share price, only time will tell.
Always remember to conduct your own due diligence.
