It has been another eventful day for the Kuniko Ltd (ASX: KNI) share price on Friday.
At one stage today, the battery metals explorer’s shares were down as much as 29% to $1.55.
But just 90 minutes later the Kuniko share price was up 22% for the day at $2.65.
What’s going on with the Kuniko share price?
The Kuniko share price has been heavily traded this week since landing on the ASX boards on Tuesday. This follows its spin off from clean lithium developer Vulcan Energy Resources Ltd (ASX: VUL) with a listing price of just 20 cents.
While the company’s shares took off on day one, there was particularly strong interest in them on Thursday. This was due to the release of an update that got investors excited about its future prospects.
That release reveals that Kuniko has now kicked off geochemical sampling programs with a significant schedule of activity across its projects in Norway.
What is Kuniko exploring?
The Norway based battery metals explorer is targeting three fundamental metals for electromobility: Cobalt, Nickel and Copper. It is doing this at a suite of historical producing battery metals projects, with minimal previous modern exploration.
And much like former parent Vulcan Energy, the company’s extraction and production processes will aim to be carbon neutral and work in harmony with the environment. This is by harnessing the region’s natural energy.
The company notes that Europe will require a large volume of battery metals to support the >800 GWh battery manufacturing capacity required by 2030 to supply the electric vehicle market.
Per annum, this equates to approximately 160,000 tonnes of cobalt, 500,000 tonnes of nickel and 1,300,000 tonnes of copper. Kuniko believes it has an advantage by being ESG compliant and meeting EU regulations.
What else is happening?
Due to the incredible rise in the Kuniko share price since listing, it was dealt a speeding ticket by the Australian share market. It also prompted a report in the AFR claiming that Kuniko shares are being pumped and dumped by stock promoters.
And while the company has acknowledged that it has appointed online investor relations company S3 Consortium, it stated that “it has no relationship whatsoever with the Telegram group [app] referred to in the AFR news article, or any intraday or meme stock promoters.”
The post What’s going on with the Kuniko (ASX:KNI) share price? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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