The Aeris Resources Ltd (ASX: AIS) share price is jumping for joy. At the time of writing, shares in the mineral explorer are swapping hands for 19.75 cents each – up 9.72%.
The massive price rise comes after the company announced “tremendous” copper results from its mine in western New South Wales.
Let’s take a closer look at today’s results.
The Aeris share price is rising
In a statement to the ASX, Aeris Resources announced a series of “high grade” copper intersections at its Constellation deposit within its Tritton mine in NSW.
Highlights include:
- a 13m wide ore containing 8.64% copper.
- an 11m wide ore containing 8.63% copper.
- a 9m wide ore containing 8.20% copper, and
- an 11m wide ore containing 4.63% copper.
As well, Aeris declared more high-grade copper mineralisation near the surface, a positive indication for future exploration. Investors clearly believe so too judging by the rising Aeris share price.
Management commentary
Aeris Executive Chair Andre Labuschagne said:
The RC drill program has been a tremendous success. To say that the near surface drilling results at Constellation have surprised on the upside would be an understatement.
A number of the RC drill holes encountered excessive water and had to be discontinued whilst still in visible mineralisation. RC drilling has been suspended whilst we complete these holes with a diamond tail. This is expected to be completed in the next couple of weeks.
Copper commodity price
Copper is currently trading on the commodities market for US$4.36 per pound. It’s up nearly 1% today, 2.1% this week, and 24.1% year-to-date.
According to the website Trading Economics, copper prices have slipped somewhat over the past 2 months as supply comes back online. The website says its relatively high price, however, is due to strong demand from sustained economic growth in the US.
Looking forward, Trading Economics says copper is forecast to rise to $5.00 per pound over the next 12 months.
Aeris share price snapshot
During the past 12 months, the Aeris share price has increased by 400%. Its current share price is only just off its 52-week high of 23 cents per share.
Aeris Resources has a market capitalisation of $434 million.
The post Why the Aeris (ASX:AIS) share price is jumping 10% appeared first on The Motley Fool Australia.
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More reading
- 3 ASX shares that’ll grow regardless of inflation or economy: expert
- Aeris (ASX:AIS) share price slides despite project update
- Aeris Resources (ASX:AIS) share price races 7% higher to multi-year high
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