Why has the 5E Advanced Materials share price leapt 17% in 2 days?

Three businesspeople leap high with the CBD in the background.Three businesspeople leap high with the CBD in the background.

The 5E Advanced Materials Inc (ASX: 5EA) share price has climbed further into the green today, now up 1.77% at $2.88.

Investors have pushed the share from lows of $2.83 on 16 June, following a period of wide-reaching volatility in 2022, as seen on the chart below.

TradingView Chart

What’s up with the 5EA share price?

Investors rallied the 5EA share price back in May as well following the release of the company’s third-quarter results.

The minerals exploration and production company reported a net loss from operations of $33 million. That was up from $3.8 million the year prior and amounted to a net loss of 79 cents per share.

Market fundamentals for boric acid are healthy, CEO Henri Tausch said at the time, “with average boric acid prices up more than 50% during Q1 2022”.

Aside from that, 5EA yesterday confirmed its NASDAQ-listed stock will be included in the Russell 2000, Russell 3000, and Russell Microcap indices.

Inclusion into the benchmarks will also see 5EA shares purchased by funds and investment managers that have mandates tied to the indices.

It also secures a vote of approval for the share, seeing as it had to pass several selection criteria before its inclusion.

Also in June, 5EA signed a letter of intent with Corning Inc to supply boron specialty metals as part of a collaboration with the company.

Corning is one of the largest technical glass manufacturers in the world, 5EA says.

Since the company floated in March 2022, the 5EA share price is down around 3%.

The post Why has the 5E Advanced Materials share price leapt 17% in 2 days? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Zach Bristow 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/6NLgSBx

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s