Resources wrap: There’s nothing undercooked about these ASX rare earths stocks

Rare earths stocks have been in, er, rare form, perhaps sparked by Gina Rinehart’s move to amass strategic equity positions in the beaten-up sector. Here’s your resources wrap.

Rare earths stocks have been in, er, rare form on Friday, perhaps sparked by Gina Rinehart’s move to amass strategic equity positions in the beaten-up sector.

The acquisitive mining billionaire also picked up a stake in US producer MP Materials which, along with Lynas, are the only miners of note outside China.

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Add to this predictions of a price rebound in the second half of the year, and you have a good sentiment boost for the sector, which has fallen off the investment radar in recent times.

Shares of Lynas Rare Earths $LYC rise as much as 5.9% to $6.45, the highest since January 10, after Gina Rinehart and Hancock Prospecting upped their stake in $LYC to 5.82%.

— CommSec (@CommSec) April 17, 2024

Today’s standout winner on the ASX is DY6, which picked up rock chips grading up to 3.22 per cent rare earths at a newly granted licence at its Machinga project.

The sampling over EL0705, acquired November last year, threw up some juicy anomalies only partially tested by previous drilling.

This drilling over the original project area delivered strong results topping up at 15.1m grading 1.01 per cent TREO with substantial niobium.

DY6 is now refining targets ahead of next phase of drilling.

At 2.30pm (AEST), DY6’s share price was up more than 35 per cent for the day.

Also making gains in Friday trade were fellow REE stocks Lycaon Resources (ASX:LYN) – up by nearly 15.8 per cent for the day at 2.30pm (AEST), Godolphin Resources (ASX:GRL) – lifting 6.25 per cent for the day after snapping up the remaining 49 per cent of its flagship project – and Nimy Resources (ASX:NIM) – up by more than 9 per cent at 2.30pm.

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Other resources stocks in the news

CYPRIUM METALS (ASX:CYM)

The owner of the mothballed Nifty copper mine in WA has secured the services of Scott Perry, a storied industry veteran with a bunch of wins under his belt.

Perry – who will be CYM’s non-exec director and chair of the audit committee – has been president & CEO at TSX-NYSE listed mid-tier Centerra Gold and chair of the World Gold Council’s audit committee from 2015-2021.

“I am delighted to join Cyprium, which is quickly advancing one of the most exciting brownfields copper projects in Australia,” Perry said.

“I look forward to contributing to the company’s development as it continues to execute against its strategy and fast-track the recommencement of mining operations at Nifty.”

You can read about Nifty’s not-so-nifty operating history here.

The market seemed to welcome the arrival of Perry, with its share price up nearly 21 per cent for the day at 2.30om Friday (AEST).

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FIRETAIL RESOURCES (ASX:FTL)

FTL listed April 2022 with veteran company makers on the board and heavyweights on the major shareholder list, including miner Spartan Resources (ASX:SPR) and Chinese battery metals investor Jayson.

Jayson is affiliated with CATL, the world’s largest lithium battery cell manufacturer.

Its focus right now is Picha; a giant project right in the heart of No. 2 copper producer Peru, where mining majors such as Vale, BHP, Rio and Newmont all operate.

Assays are now trickling in from a maiden 5000m drilling campaign at Picha’s Cumbre Coya copper target.

“The confirmation of the continuation of the mineralisation over 170m with the structure open in all directions gives us huge encouragement for what we may have here,” exec chair Brett Grosvenor said.

“Work continues on site as we move into the latter part of the drill program, and we eagerly await the next results to further develop our understanding of this system.”

Results are pending for the third and fourth holes, which were drilled to depths of 245m and 573m respectively.

At 2.30pm Friday (AEST), Firetail’s share price was up more than 17.6 per cent for the day.

This content first appeared on stockhead.com.au

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