Lynas Rare Earths Ltd

The fund managers believe that Lynas Rare Earths Ltd. (LYC) is one of the most strategically significant resource companies globally, particularly in the rare earths sector. In their opinion, Lynas stands out as the largest and only significant producer of separated rare earth materials outside of China, a position that has become increasingly important amid geopolitical tensions and the growing demand for rare earths in key technologies like electric vehicles (EVs), wind turbines, and robotics. The fund managers see Lynas' high-quality asset base, including the Mt Weld mine—one of the largest and highest-grade rare earth mines globally—as a critical advantage. They also believe that Lynas’ expansion strategy, particularly the Lynas 2025 plan, will solidify its position as the premier non-China-based rare earth producer.

The fund managers highlight Lynas' robust financial position, supported by a net cash balance sheet, which allows it to fund its expansion plans through operating cash flow. Additionally, they emphasize the leadership of CEO Amanda Lacaze, who has successfully transformed the company over the past decade. Her stewardship is seen as a key factor behind the company’s dependable operational delivery and culture, which has been central to Lynas' growth. Overall, the fund managers are highly optimistic about Lynas' future prospects and consider it one of their highest-rated resource investments.