Insights

Up 63% this month, Australian Strategic Materials (ASX:ASM) share price rockets higher

This emerging critical metals producer is delivering some series gains in June
The post Up 63% this month, Australian Strategic Materials (ASX:ASM) share price rockets higher appeared first on The Motley Fool Australia. –

The Australian Strategic Materials Ltd (ASX: ASM) share price has rocketed another 9.15% higher, trading at $7.75 the time of writing.

Shares in the integrated critical metals producer’s have spent most of this month in the green, surging more than 63% in June.

The company has not announced any price sensitive news this month, so let’s take a look at what else might be driving the Australian Strategic Materials share price run to record all-time highs.

What’s the latest?

Sustainable production of critical materials

Australian Strategic Materials has a “mine to manufacturer” business model, leveraging its rare earths and oxides resource at the Dubbo project to supply its strategic plants which refine the raw material into metals, alloys and powders.

According to its investor presentation on 11 May, the Dubbo project has received all required environmental approvals and ready for construction.

Additionally, the company said that the Dubbo project was targeting zero carbon emissions through large scale renewables.

In terms of its metallisation and refining plants, the company previously announced its first proposed Korean Metals Plant to produce high purity metals, alloys and powders.

Australian Strategic Materials has described this as:

A springboard for proposed global expansion in strategic locations, identifying partnership opportunities to push further downstream into magnets and other applications.

Right place at the right time

The Australian Strategic Materials share price isn’t the only ASX-listed producer of ‘critical metals’ running into record territory.

ASX lithium shares including Pilbara Minerals Ltd (ASX: PLS), Galaxy Resources Ltd (ASX: GXY) and Orocobre Limited (ASX: ORE) have all surged to multi-year highs this year. The jump in lithium miner valuations has been underpinned by higher lithium prices and strong demand across key markets.

A similar narrative is taking place for Lynas Rare Earths Ltd (ASX: LYC), the second largest producer of rare earths (ex-China).

The Lynas share price has lifted 33% year-to-date to an 8-year high of $5.60.

Globally, exchange-traded funds (ETFs) such as the Global X Lithium & Battery ETF and Invesco Solar ETF have lifted ~80% and ~147% respectively since February 2020.

It appears the Australian Strategic Materials share price is reflecting the overall bullish performance of renewable related industries.

The post Up 63% this month, Australian Strategic Materials (ASX:ASM) share price rockets higher appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australian Strategic Materials right now?

Before you consider Australian Strategic Materials, 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 Australian Strategic Materials 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 May 24th 2021

More reading

Here are 3 of the most actively traded ASX 200 shares today

Pilbara Minerals (ASX:PLS) shares are the most traded on the ASX 200 today
2 high performing ASX lithium shares tipped by top fund manager

Here are some of the most actively traded ASX 200 shares today

The Pilbara Minerals (ASX:PLS) share price is up 12% in a week

Motley Fool contributor Kerry Sun 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 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!