Why the Helix (ASX:HLX) share price is rocketing 129%

The Helix Resources Ltd (ASX: HLX) share price is surging an incredible 129% today after a “massive” announcement.
The post Why the Helix (ASX:HLX) share price is rocketing 129% appeared first on The Motley Fool Australia. –

ASX miners record shipping cost looking excitedly at mobile phone

The Helix Resources Ltd (ASX: HLX) share price is surging today after announcing a “massive” copper find at one of its mining operations.

At the time of writing, shares in the mineral exploration company are up 128.5%, trading at 3.2 cents.

Let’s take a closer look at today’s announcement and what it means for the Helix share price.

What’s up with the Helix share price?

In a statement to the ASX, Helix advised it has intersected an “intense copper sulphide mineralisation” approximately 80m down from a previous copper find at its Canbelego mine in New South Wales. A second hole found more copper sulphide deposits 90m down from another find in the mine.

The Canbelego mine is a joint venture between Helix and Aeris Resources Limited (ASX: AIS). Helix controls 70% of the project.

As a result of these latest finds, Helix says it will reassess the mineralisation prospects at the mine for a larger estimate in its next resources update. The previous estimate was for 1.2% copper.

The expectations for greater copper deposits are seeing investors rally around the Helix share price this morning.

Management commentary

Helix managing director Mike Rosenstreich said

This is an exciting hit – notably there is more massive copper mineralisation in this drill hole which is very encouraging for a high-grade copper zone when the assays come in. As a bonus, there is the possibility of a second copper position emerging after we intersected chalcopyrite veins much higher in this hole.

Canbelego is one of Helix’s two advanced copper projects and a key objective of this drilling program and the EM surveys is to demonstrate the growth potential of the defined mineralisation at each of them. Clearly, these two recent drill holes at Canbelego have extended the copper mineralisation nearly 100 metres below the previous base of the mineralisation envelope, which I am sure will be confirmed by the assays expected in June.

Copper commodity price

Copper is currently trading for US$4.79 per pound on the commodities market. It is down from its record high of US $4.90 a pound from earlier this week. Despite this, the metal is still 18.4% higher than last month and an amazing 36.2% greater compared to the beginning of this year. In comparison, gold is up just 5.0% this month but down 3.5% in 2021.

The website Trading Economics says the price of copper is increasing due to increasing demand and decreasing supply. Demand is booming because of the rebounding global and economy and surging demand for green technology. Copper is an essential element in renewable technology production.

Trading Economics attributed the supply drop to “a lack of investment by large miners” and recent tax hikes on copper production in Chile. The South American nation is the largest copper producer in the world.

Helix share price snapshot

Over the past 12-months, the Helix share price has increased 254.5%. Its current price is a 52-week high for the company. The last time the Helix share price was at this level was in September 2018.

Helix has a market capitalisation of $49 million.

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.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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.

The post Why the Helix (ASX:HLX) share price is rocketing 129% appeared first on The Motley Fool Australia.

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!