Lynas a rare treat for traders

SHARES in rare minerals producer Lynas have surged after analysts at UBS put a buy rating on the stock and said the company had “the best global rare earth deposit”.

Analyst Daniel Morgan said the company’s deposit and position as owner of the only active non-China processing facility made it an attractive investment.

Mr Morgan noted that under its project called Next, Lynas was expanding production of rare earth oxide from 16,000 to 25,000 tonnes a year.

“The difficulty Lynas had in ramping up demonstrates a massive barrier to entry for peers,” Mr Morgan said in a report for investors. Lynas shares rallied 11.2 per cent, or 24¢, yesterday to close at $2.38.