Why the Vulcan Energy (ASX:VUL) share price is charging 6% higher
James Mickleboro | April 29, 2021 3:37pm |
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In afternoon trade, the Europe-based lithium developer’s shares are up 6% to $8.35.
Incredibly, this means the Vulcan Energy share price is now up over 200% since the start of the year.
Why is the Vulcan Energy share price charging higher today?
A number of lithium producers are climbing higher today despite there being no real industry news to speak of.
The likes of
Pilbara Minerals Ltd(ASX: PLS) are all recording solid gains of their own.
So, today’s gain in the Vulcan Energy share price might have more to do with that than the release of its quarterly update this afternoon.
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Rinehart’s closely held Hancock Prospecting Pty will become a cornerstone investor in Vulcan Energy Resources Ltd.’s A$120 million ($92 million) institutional share sale, with the proceeds to be used to further the development of the project. It plans to have a definitive feasibility study ready by 2022.
Vulcan, whose shares in Sydney have risen more than threefold this year, hopes to benefit from rising demand for lithium in Europe, which is trying to build up a local battery-manufacturing industry to reduce dependency on Asian suppliers. The company’s pre-feasibilty study values its lithium resources near Offenburg at 2.8 billion euros ($3.4 billion) before taxes.