The Australian Strategic Materials Ltd (ASX: ASM) share price is still in the freezer as the company prepares to announce potentially exciting study results.
The company froze the trading of its shares before the market opened on Friday. Since then, the Australian Strategic Materials share price has been sitting at $11.40.
Let’s investigate what the market might hear from the speciality metals and oxide producer when it exits the trading halt.
What’s going on?
Plenty of eyes are on Australian Strategic Materials share price today after the company flagged it would either release highly anticipated news or restart trading on Tuesday morning. Unless, of course, it extends its trading halt.
The anticipated news regards an optimisation study at the company’s wholly-owned Dubbo Project – a critical pillar of its business.
In October, the company said the study’s results would be released before the end of November. However, no news has been heard of it yet.
The study is aiming to update previous findings at the project with current pricing and design improvements.
Following its completion, Australian Strategic Materials hopes to start moving towards the next phase of the project’s development.
The Dubbo Project’s said to be a globally significant resource of rare earths, zirconium, niobium, hafnium, tantalum, and yttrium.
According to the company, the metals play an important role in future technologies, particularly in the clean energy and transportation sectors.
The company expects the project will see it becoming one of few critical metal oxide supply options outside of China.
It plans to process the project’s productions at its critical metals plants, located in key technology markets. The first plant will be in South Korea.
Australian Strategic Materials share price summary
Right now, the Australian Strategic Materials share price is trading 73% higher than it was at the start of 2021. However, it has fallen 6.4% since this time last month.
At its current share price, the company has a market capitalisation of $1.59 billion.
The post Why is the Australian Strategic Materials (ASX:ASM) share price halted? appeared first on The Motley Fool Australia.
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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.
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