Shares in the Australian mineral services company continue their march upwards.
The post Why the Mineral Resources (ASX:MIN) share price hit an all-time high today appeared first on The Motley Fool Australia. –
Shares in Mineral Resources Limited (ASX: MIN) hit an all-time high in early trade this morning, extending their run this year to date.
The Mineral Resources share price reached a record high of $58.17 before retreating slightly. At the time of writing, shares in the company are trading at $57.79, up 0.5%.
There has been no market-sensitive information specific to the company this morning, so let’s take a look at what’s been happening lately with the mining services provider.
What has Mineral Resources been up to lately?
The mining services player, with expertise in lithium and iron ore, has had a busy start to the month.
On 6 July, the company announced that a subsidiary had secured a drilling rig to start gas exploration drilling for the conventional gas exploration well Lockyer Deep 1, located onshore at the Perth Basin.
Shares have climbed from ~$56 to today’s all-time high following this announcement, so it’s possible today’s gains are an extension of the market pricing in this positive news.
Back in May, the company also released that it was in the top five mineral producers in Australia. It said in a Macquarie presentation it was well-positioned to capitalise on recent strengths in iron-ore markets.
Analysts and Macquarie agree with the company’s sentiment, and see further upside potential from these end-market drivers.
Mineral Resource share price snapshot
Over the year to date, shares in the company are up 53%, building on a 12-month return of 155% and well above the 52-week low of $22.49 in July 2020.
The returns exhibited over each of these time frames outpaces the S&P/ASX 200 Index (ASX: XJO) return of around 9.5% and just over 23%, respectively.
Today’s gains extend a solid run into the green for Mineral Resources. At the current market price, the company has a market capitalisation of $10.8 billion and trades at a price-to-earnings ratio (P/E) of 16.7.
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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.