Shares in Rainbow Rare Earths Ltd. rose on Monday after the company said that the recent surge in yttrium prices has "materially enhance[d]" the economics of its Phalaborwa project in the Limpopo region of South Africa.
European yttrium prices have rocketed more than 3,000% since the start of the year due to supply disruption and market shortages following Chinese export controls introduced in April.
The so-called CIF (cost, insurance, freight) price of yttrium oxide 99.999% in Europe current ranges from $220 to $320 per kg, up from $6/kg at the start of 2025.
The spread on the current price is because of differing pricing contracts but, based on the lower end of the range and a conservative estimate of payability, increased prices have added around $30m to Phalaborwa's estimated EBITDA.
"The disruption and huge price increase for yttrium has once again highlighted the fragility of global dependence on China for strategic minerals, especially those like yttrium that are essential to high-tech and defence manufacturing," said Rainbow Rare Earths chief executive George Bennett.
The stock was up nearly 5% at 19.9p by 1144 GMT. Sector peer Ecora, which holds a 0.85% gross revenue royalty on the Phalaborwa project, was rising 4%to 94.85p.