Why did the Mineral Resources share price just smash its all-time high?

The last year has been a brilliant one for the Mineral Resources Limited (ASX: MIN) share price. And the fun doesn’t appear to be over yet.

The stock just clocked up another all-time high, this time surging 3.3% to an intraday peak of $88.14. That’s a notable 1.7% higher than its prior record of $86.61, reached yesterday.

The Mineral Resources share price has since retreated somewhat to $86.55. That’s still 1.43% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted 0.69% today.

So, what’s helping drive the ASX 200 mining share higher lately? Let’s take a look.

Mineral Resources share price soars to new record high

There’s been a lot going on to excite the market over the Mineral Resources share price.

Perhaps the major driver of the attention it’s received this year has been its lithium leg.

Morgans was recently quoted as saying the company’s lithium segment is “markedly undervalued“, as my Fool colleague Bronwyn reports.

Meanwhile, the stock could be gearing up to post yet another all-time high, if Goldman Sachs is to be believed. It’s slapped the ASX 200 mining share with a buy rating and a $94 price target.

The company underwent a restructure earlier this year. That separated its lithium activities from its iron ore, energy, and mining services businesses. It also seemingly spurred so-far-unfruitful rumours the ASX 200 giant was considering a lithium spinoff.

Another likely reason the company has been commanding plenty of attention this year could be its position as a producing lithium miner.

That means it’s got a head start on many of the market’s lithium explorers and developers amid surging demand for the battery-making material.

The Minerals Resources share price is currently 47% higher than it was at the start of 2022. It has also gained 96% since this time last year.

For comparison, the ASX 200 has fallen nearly 5% year to date and more than 2% in the last 12 months.

The post Why did the Mineral Resources share price just smash its all-time high? appeared first on The Motley Fool Australia.

(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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 ASX lithium shares to buy: brokers
• Are these ASX 200 lithium shares about to become dividend machines?
• These are the ASX dividend shares to buy now: Goldman Sachs
• Could Mineral Resources shareholders be in for ‘a lot of fun’?
• Which are the best ASX lithium shares to buy now for 2023?

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 positions in and has recommended Goldman Sachs. 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/hE9UvFo