Metals Australia shares surge 80pc – but no sign of an announcement
Metals Australia is on the boil, with its share price climbing nearly 80 per cent this week — despite a lack of news.
The share price spike prompted a “please explain” from the ASX.
In the past, Metals Australia (ASX:MLS) was largely focused on uranium exploration, but after acquiring some lithium and graphite-prospective tenements in Canada, it appears to have found favour again with investors.
Shares clawed their way up from a low of 0.5c at the start of the week to 0.9c.
There is speculation that some traders were previously taking “short-term profits”, but a substantial increase in trading recently could be an indicator that professional investors are again positioning themselves for the next upswing.
Director Gino D’Anna also recently acquired a further 6 million shares for $30,000 off-market.
In its response to the ASX query, Metals Australia said it is possible that the market is responding favourably to the company’s “encouraging” preliminary metallurgical results released in mid-December for the Lac Rainy graphite project.
The results are a “strong indication that the graphite at Lac Rainy has the necessary grade and metallurgical characteristics to potentially produce a commercial graphite product”, Mr D’Anna told investors at the time.
The metallurgical report for the Lac Rainy project is currently being finalised and is slated for release within the next week.
ASX-listed juniors that have ventured into commodities such as lithium, cobalt and graphite — also known as the “battery metals” — have enjoyed spectacular share price gains in recent times.
This has largely been driven by forecasts of a substantial increase in demand for electric vehicles — which require lithium ion batteries — over the next two decades.
Stockhead is seeking comment from Metals Australia.