Why have Minerals Resources shares hit two new all-time highs this week?

The Mineral Resources Limited (ASX: MIN) share price had a fairly lacklustre day during yesterday’s trading session. That was despite the company hitting a new all-time high on Wednesday. But this morning, it has been a different story for this ASX materials share.

The Mineral Resources share price is currently trading at around $82.24 apiece. That performance is trailing the S&P/ASX 200 Index (ASX: XJO), which has boomed an impressive 2.7% so far today to well back over 7,100 points.

But earlier today, Mineral Resources rose as high as $85.56 apiece, which is, you guessed it, yet another new all-time record high for the company. This means that Mineral Resources shares have seen not one but two record highs this week.

This caps off what has been an incredible two years for the company. Back in November 2020, Mineral Resources was a $27 share. Over the subsequent two years, the company has gained almost 200%, including 110% over the past 12 months alone.

So why is this company performing so strongly this week, enough to shoot out two new record highs?

Why does the Mineral Resources share price keep hitting all-time highs?

Well, it’s not entirely clear. There haven’t been any significant announcements from the company itself for a while now, not since the 26 October quarterly activities report.

But this could still be influencing Mineral Resources shares as the company is up around 7% since that report was released. In this report, the company reported reaffirmed its guidance for FY2023, including strong results in its all-important lithium sector.

It is this which could be explaining the successes we have seen with the Mineral Resources share price of late. Lithium shares of all stripes have been surging in value over the past few weeks. Pilbara Minerals Ltd (ASX: PLS) shares are up by almost 15% since 14 October.

Lake Resources N.L. (ASX: LKE) shares are up almost 14% over the same period. And Core Lithium Ltd (ASX: CXO) shares have gained a whopping 43%.

Mineral Resources is a diversified materials share, with interests in iron ore, gas and mining services. But it is the company’s lithium interests that are probably getting investors so excited. Mineral Resources has an ownership stake in two of the country’s largest hard-rock lithium mines: Mt Marion and Wodgina, both in Western Australia.

The company plans on increasing production at Mt Marion alone from 450,000 tonnes of lithium spodumene concentrate per annum to 900,000 tonnes by 2023.

So these lithium operations could explain why investors are jumping into the Mineral Resources share price, alongside other ASX lithium shares, with such enthusiasm this week.

The post Why have Minerals Resources shares hit two new all-time highs this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

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