It has been another spectacular day for the AVZ Minerals Ltd (ASX: AVZ) share price on Wednesday.
In morning trade, the lithium developer’s shares jumped 11% to a new record high of 78.5 cents.
When the AVZ share price reached that level, it meant it was up 360% since the start of the year.
Why is the AVZ share price shooting higher?
Investors have been bidding the AVZ share price higher today despite there being no news out of it.
However, it is worth highlighting that a number of lithium shares are rising strongly today amid the ever-increasing bullish sentiment in the sector.
For example, Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) shares are both recording strong gains at the time of writing. In fact, the latter is the best performer on the ASX 200 on Wednesday.
What else is boosting its shares?
Also boosting the AVZ share price has been a recent development in relation to its Manono Lithium Project in the Democratic Republic of the Congo.
Over the last few years there have been doubts that this project would ever see the light of day. But thanks to record high lithium prices, it now appears likely to be given the green light in the near future.
Especially after AVZ received firm commitments to raise $75 million (before costs) at 50 cents per new share earlier this month. Approximately 85% of the funds were raised from global institutions, with the balance coming from existing sophisticated shareholders. This includes cornerstone investor Suzhou CATH Energy Technologies.
AVZ’s Managing Director, Nigel Ferguson, believes this was an important milestone for the company.
He commented: “This capital raising marks an important milestone in our journey to develop the Manono Project which strengthens the financial position of the Company and will assist to keep the Project timeline within reach.”
The post Why did the AVZ (ASX:AVZ) share price jump 11% to a record high today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in AVZ right now?
Before you consider AVZ, 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 AVZ 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
More reading
- 2 excellent ASX growth shares offering big potential returns in 2022
- Macquarie names the best ASX lithium shares to buy in 2022
- 3 excellent ASX growth shares analysts are excited about
- Is the IGO (ASX:IGO) share price a better buy than Allkem?
- Why AVZ, Brickworks, Charter Hall, and Senex shares are storming higher
Motley Fool contributor James Mickleboro owns Orocobre Limited. 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/3zasr4G
Leave a Reply