Vital Metals (ASX:VML) share price leaps 6% on production update

Why shares in the rare earth miner are shooting higher on Friday
The post Vital Metals (ASX:VML) share price leaps 6% on production update appeared first on The Motley Fool Australia. –

The Vital Metals Limited (ASX: VML) share price has leapt higher this morning after a bumper production update from the rare earths producer.

At the time of writing, the Vital Metals share price is up 5.56%, trading at 5.7 cents.

Why is the Vital Metals share price climbing higher?

Shares in the Aussie-Canadian miner shot more than 9% higher at Friday’s open before paring back some of those gains. That share price swing comes after Vital Metals provided an update on its Nechalacho rare earths project in Northwest Territories, Canada.

The ASX company has now completed its first month of rare earths production at the site. Vital Metals Managing Director Geoff Atkins said, “We are really pleased with the way our operations are ramping up at Nechalacho, and the exciting developments we’ve made with ore sorter operation and mineralisation at the North T pit wall during July.”

Notably, Vital Metals said mining at the pit has intersected high-grade rare earth oxide (REO) mineralisation in the northern edge of the wall. The company said this new material could allow Vital to potentially expand the North T pit beyond the existing mine plan.

Today’s update impressed investors who have snapped up shares. The Vital Metals share price leapt more than 5% at the start of trade following the news.

Vital Metals said its ore sorter has exceeded expectations thus far. The Nechalacho ore sorter commenced processing in July with high grade product output better than expected.

The production update is the second positive update from Vital Metals this week. Outstanding first-pass assay results from the Nechalacho project saw the ASX share jump higher on Tuesday. That included news that its Tardiff Zone 2 and 3 could significantly extend the project’s mine life.

These recent gains mean that the Vital Metals share price has now climbed 90% higher in 2021 with a current market capitalisation in excess of $250 million.

The post Vital Metals (ASX:VML) share price leaps 6% on production update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Vital Metals right now?

Before you consider Vital Metals, 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 Vital Metals 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’s why the Vital Metals (ASX:VML) share price is flying higher today

Motley Fool contributor Ken Hall 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!