The Prospect Resources Ltd (ASX: PSC) share price is performing well in September.
While the company has released good news this month, its share price is seemingly moving independently.
At the time of writing, the Prospect Resources share price is 40 cents, 11.11% higher than it was at the end of August.
Let’s take a look at the latest news from the lithium and gold producer.
The month so far for Prospect Resources
The Prospect Resources share price is having a great month on the ASX.
It comes after the company released an update on the sale of its Penhalonga Gold Project.
The project’s buyer, Luzich Resources, has executed an options agreement for the purchase and has agreed to pay the remaining US$750,000 balance on the US$1 million purchase price.
Luzich paid a deposit on the project when it signed a binding term sheet in October 2020.
According to Prospect Resources’ website, the Penhalonga Gold Project is the only gold project currently held by the company.
After its sale, it will focus all its efforts on its Arcadia Lithium Project.
The Prospect Resources share price didn’t react to the update on the sale. However, it has since gained 11%.
The sale might not be the only catalyst for the Prospect Resources share price’s recent boost.
The price of lithium has been gaining steadily in September and it might be dragging Prospect Resources’ stock along with it.
According to S&P Global Platts, the price of lithium carbonate has been gaining this month as concerns surrounding global supply have increased demand.
Prospect Resources share price snapshot
September’s gains have added to Prospect Resources’ strong performance on the ASX.
Right now, the company’s share price is 135% higher than it was at the start of 2021. It has also gained 150% since this time last year.
The company has a market capitalisation of around $157 million.
Should you invest $1,000 in Prospect Resources right now?
Before you consider Prospect Resources, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Prospect Resources wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Li-S Energy (ASX:LIS) share price up another 3% in second day of trading
- Why this top broker rates the Webjet (ASX:WEB) share price a buy
- Argosy (ASX:AGY) share price edges lower on Tonopah Lithium Project update
- 4DS Memory (ASX:4DS) share price lifts on patent update
- Why PPK (ASX:PPK) and Li-S Energy are this fund’s largest positions
Motley Fool contributor Brooke Cooper 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.
from The Motley Fool Australia https://ift.tt/3up0MdU