Topic: How To Invest

What is your opinion on about these two Australian rare-earth stocks: Lynas Corp. and Iluka Resources Ltd.?

Article Excerpt

Rare earth stocks continue to rise sharply. That’s mainly because China, which supplies 95% of global production, has imposed export quotas. At this point, some rare-earth stocks are okay to hold, but only for investors who are willing to bet on a further rise in the shares, and continued investor interest in rare-earth stocks. A: Lynas Corp., $1.97, symbol LYC on the Australian exchange (Shares outstanding: 1.7 billion; Market cap: $3.3 billion; www.lynascorp.com), owns the Mount Weld project. Located in Western Australia, Mount Weld could contain one of the richest known deposits of rare earths in the world. Lynas hopes to bring Mount Weld into production later this year. The company is also building the Lynas Advanced Materials Plant (LAMP), a rare-earths processing plant, near Kuantan in Pahang, Malaysia. This facility should start up in third quarter of 2011. The stock is okay to hold, but only for aggressive investors willing to bet on a continued rise in rare-earth stocks. A:…