The Caravel Minerals (ASX:CVV) share price has seen an amazing 1,467% return on investment over the last year. Click on to find out why.
The post Caravel Minerals (ASX:CVV) share price surges 1400% in a year. Here’s why appeared first on The Motley Fool Australia. –
The Caravel Minerals Ltd (ASX: CVV) share price has been a proverbial gold mine for investors. Over the last 12 months, shareholders have seen an amazing 1,466.67% return on investment (ROI) in the company.
Just today, shares in the company were up 23.68% before being placed in a trading halt. Before the suspension, shares in the company were trading for 23.5 cents each. The S&P/ASX All Ordinaries Index (ASX: XAO), by comparison, ended the day down 0.12%.
Let’s take a closer look at the incredible rise of the Caravel Minerals share price.
What’s going on with the Caravel Minerals share price?
The Caravel share price has been going gangbusters over the last year.
Caravel, being a copper-based company, unsurprisingly sees its fortunes rise and fall with that of copper. Well at the moment, copper is rising.
Over the past 12 months, the twenty-ninth element’s price has increased by 85.87%, according to Trading Economics. Just from the beginning of this year, the metal is up 16.57%. It currently sells on the commodity market for US$4.103 per pound.
Only one week ago, Caravel announced “significant” copper deposits had been found at its Bindi deposit in Western Australia.
A week prior to that announcement, the company declared it was exploring an area in south-west WA with high chances of “massive sulphide-hosted nickel-copper-platinum group elements…”
Another factor influencing the copper price is supply and demand. Many Latin American countries are seeing ongoing supply issues because of the pandemic. As well, there is a bill in the Chilean Congress to increase royalties on copper miners. South America is one of the largest copper producers on the globe.
As well, copper (along with lithium and some other metals) is essential in the production of climate-friendly technologies. Demand for zero-emissions tech, such as electric cars and solar panels, is soaring as governments and industry alike look to combat man-made climate change. As supply contracts and demand increases, this inevitably leads to a price rise. In economics, this is known as the law of supply and demand.
Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- 8 ASX 200 shares rated as ‘outperform’ by brokers
- Compared! How are ASX gaming share prices performing?
- Why the K-Tig (ASX:KTG) share price opened 10% higher today
- 2 quality ASX dividend shares to buy this month
- What experts are saying about Telstra’s (ASX:TLS) big restructuring plans
Motley Fool contributor Marc Sidarous 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 Bruce Jackson.