Insights

How has the AVZ Minerals (ASX:AVZ) share price leapt 21% in a week?

Lithium demand looks to keep growing amid strong forecast growth of EVs.
The post How has the AVZ Minerals (ASX:AVZ) share price leapt 21% in a week? appeared first on The Motley Fool Australia. –

The AVZ Minerals Ltd (ASX: AVZ) share price is marching higher again today. The ASX lithium share is up 3.66% in early afternoon trade, to 42.5 cents per share.

That puts the AVZ Minerals share price up 21% since the closing bell last Wednesday, 27 October.

Below we look at what helped drive shares higher over the week.

Booming lithium demand and project upgrades

The AVZ Minerals share price is subject to many forces.

One of the likely tailwinds the ASX lithium explorer has enjoyed is the booming demand and growth outlook for lithium.

As The Motley Fool reported last week, Tesla Inc (NASDAQ: TSLA) leapt past the psychologically important US$1 trillion market capitalisation milestone. That followed global car rental company Hertz announcing its plans to purchase 100,000 Teslas.

That news likely stirred investor bullishness on the outlook for lithium shares, with many ASX and globally-listed lithium explorers posting solid gains. The AVZ Minerals share price closed up 5.8% on 28 October.

The AVZ share price really got a boost this Monday. This followed the afternoon release of the company’s quarterly report on Friday, with its shares finishing Monday up 11.3%.

Among the highlights of the quarter, AVZ signed Suzhou CATH Energy Technologies as a cornerstone investor to develop its Manono Lithium and Tin Project, located in the Democratic Republic of Congo.

Commenting on the partnership AVZ managing director, Nigel Ferguson said:

The cornerstone investor deal with CATH marked one of the most significant days in our company’s short history and clearly indicated to the world how important our Manono Lithium and Tin Project is…

The deal with CATH will fund a significant portion of the total required project financing, whilst AVZ maintains a controlling 51% interest in the Manono Project and our position as lead developer. The deal also provides significant opportunities to advance other downstream projects, providing an exciting future for AVZ shareholders.

AVZ Minerals also completed a $40 million capital raising and upgraded its Manono JORC Proved and Probable Ore Reserves Estimate to 131.7 million tonnes. That was up 41.6% from what was reported in the definitive feasibility study (DFS) in April 2020.

AVZ Minerals share price snapshot

Over the past 12 months, the AVZ Minerals share price has left the All Ordinaries Index (ASX: XAO) in the dust. Over the full year, AVZ Minerals shares are up a whopping 490% compared to a gain of 23% posted by the All Ords.

AVZ Minerals has continued to outperform, with its share price up 26% since this time last month.

The post How has the AVZ Minerals (ASX:AVZ) share price leapt 21% in a week? appeared first on The Motley Fool Australia.

Should you invest $1,000 in AVZ Minerals right now?

Before you consider AVZ Minerals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ Minerals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why ASX lithium shares are surging higher on Tuesday

Why ASX lithium shares are booming on Thursday

How did ASX lithium shares perform in the FY22 first quarter?

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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!