Weekly | Are LYC and ILU the Biggest Beneficiary as Rare Earth Demand Rises?
As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 7819.10 on Friday, up 1.42% in the past 5 days.
1. $CLARITY PHARMACEUTICALS LTD(CU6.AU)$ +17.65%
Clarity’s stock is experiencing upward momentum due to several strategic developments:
The company has secured a commercial-scale supply agreement with Nusano for copper-64 isotopes, which strengthens its supply chain for late-stage clinical trials and commercialization, especially in prostate cancer diagnostics.
The acquisition of a significant holding by State Street Corporation suggests a shift in ownership dynamics, potentially influencing strategic decisions and boosting investor confidence.
Clarity’s initiation of the Phase II Cohort Expansion of the SECuRE trial, focusing on prostate cancer treatment with an improved formulation, further enhances manufacturing and distribution efficiency.
2. $NEUREN PHARMACEUTICALS LTD(NEU.AU)$ +14.58%
Neuren confirms Phase III trial goals for PMS drug NNZ-2591, a potential treatment for Phelan-McDermid syndrome (PMS), has received the green light from the US FDA to proceed as planned.
Neuren has announced a daily buy-back of its ordinary fully paid securities. This buy-back initiative is part of the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value.
3. $LYNAS RARE EARTHS LTD(LYC.AU)$ +13.19% and $ILUKA RESOURCES LIMITED(ILU.AU)$ +12.20%
American customers have to look elsewhere with China 's policy of restricting rare earths and its supply, Lynas and Iluka will benefit from rare earth price increases.
Lynas's established mining and processing facilities in Australia and Malaysia provide a viable alternative to Chinese sources, ensuring operational leverage and revenue stability.
With $308M in cash and manageable debt maturing in 2030, Lynas's balance sheet minimizes risk even if market cycles turn unfavorable.
Risks include potential tariff changes, currency exchange fluctuations, and OTC trading liquidity, but Lynas remains the best non-Chinese option for rare earths.
And Iluka reported strong Q1 2025 performance and progress on key projects, overall production for the period was 131,000 tonnes (t), a slightly larger amount from the previous quarter. The total comprised 35,000t of zircon sand, 18,000t ZIC and 55,000t of synthetic rutile.
JPMorgan analyst Al Harvey upgraded Iluka stock from Neutral to Overweight.
4. $Zip Co Ltd(ZIP.AU)$ +11.78%
Zip posted record quarterly cash earnings, helped by strong performance from its U.S. operations and raised its fiscal 2025 earnings forecast, sending its shares more than 18% higher.
Shares of the company hit their highest level since March 28, it was the top gainer on the benchmark index.
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