This ASX stock is up 74% in a month. Here’s why it’s ripping 9% higher today

Sunrise Energy Metals Ltd (ASX: SRL) is back on the radar after another strong move on Tuesday.

The stock is up 9.19% to $12.83 in morning trade, continuing a run that has built quickly across April.

Over the past month, the share price has climbed roughly 74%, putting it among the standout movers on the S&P/ASX 300 Index (ASX: XKO).

A fresh update released before market open has brought the stock back into focus.

Development plans move closer to reality

The latest quarterly update centres on the Syerston Scandium Project in New South Wales, which is moving closer to development.

A completed feasibility study outlines a pathway to produce 60 tonnes per annum of scandium oxide. That positions the project as a potential large-scale supplier into a niche but growing market.

The study also points to a relatively modest upfront capital cost of around US$120 million. Operating costs are expected to average US$534 per kilogram across the life of mine.

Scandium demand back in focus

Part of the interest sits with where scandium demand could head next.

According to the company, global demand for scandium oxide could rise to around 300 tonnes per year by 2030. Growth is being driven by solid oxide fuel cells, aerospace applications, and next-generation semiconductors.

There is also a shift in supply dynamics. Export restrictions from China across rare earths materials have tightened availability, bringing more focus to alternative sources.

Sunrise is positioning Syerston as one of those sources, particularly for Western customers looking to diversify supply chains.

Funding support and expansion plans emerge

Another detail getting picked up is early-stage funding support.

Sunrise has secured a letter of interest from the US Export-Import Bank for up to US$67 million in project financing, subject to conditions.

At the same time, the company is already looking beyond the initial plan.

Work is underway on a potential expansion that could lift production by a further 120 tonnes per year. If developed, that would significantly increase output and reduce unit costs.

Construction is being targeted for the middle of 2026, with first production expected in 2028.

Work continues behind the scenes

Outside the main update, early-stage work across the project is progressing.

Drilling programs, engineering design, and infrastructure planning are all underway. The aim is to tighten resource definition and move toward a final investment decision (FID).

The company also reported ongoing discussions with potential offtake partners, which is a key step for projects at this stage.

Beyond Syerston, exploration activity continues across Queensland assets, while a geothermal joint venture in the Millungera Basin is also advancing.

Cash position and market attention

At the end of the March quarter, Sunrise held around $117 million in cash.

That provides a degree of flexibility as development work continues, though further funding will likely be needed as the project moves toward construction.

The company was also recently added to the S&P/ASX All Ords Index (ASX: XAO), which increases its exposure to institutional investors and index funds.

With the share price already on a strong run, the stock is sitting just off its multi-year high of $13.01.

The post This ASX stock is up 74% in a month. Here’s why it’s ripping 9% higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.