Insights

Why the Province Resources (ASX:PRL) share price is up 9% on Friday

Australia’s first zero carbon green hydrogen project is pushing ahead on multiple fronts.
The post Why the Province Resources (ASX:PRL) share price is up 9% on Friday appeared first on The Motley Fool Australia. –

The Province Resources Ltd (ASX: PRL) share price is surging on Friday after a company announcement.

The announcement contained a number of updates for its HyEnergy Zero Carbon Hydrogen Project.

Province Resources is aiming to become Australia’s first truly zero-carbon green hydrogen project.

At the time of writing, the Province Resources share price is up 9.37% to 18 cents.

What did Province Resources announce?

Province Resources advised that its scoping study data collection is proceeding as anticipated. It expects heritage, ecological, environmental and geotechnical studies to commence shortly.

In addition, the company has been undertaking advanced modelling of expected green hydrogen prices and the cost of production to optimise an initial Phase 1 development.

The green hydrogen industry is in its infancy. Province Resources is actively working with and assisting multiple state government departments to develop a comprehensive legislative regime.

The company hopes to secure a lead agency status to help advance the project’s environmental and other permitting requirements.

Province Resources highlighted that at the local government level, it secured the support of the Shire of Carnarvon. It has entered a memorandum of understanding (MoU) to investigate the use of 12.3 hectares north of the Carnarvon township.

The company will explore whether the area is suitable to develop infrastructure for the HyEnergy Zero Carbon Hydrogen Project.

Province Resources has also commenced discussions with a number of potential domestic offtake partners in the transport and utility sectors. It will expand these discussions to include potential international offtakers, too.

Management commentary

Province Resources’ CEO David Frances commented on the recent theme of hydrogen.

Globally we have seen more and more hydrogen projects being announced. Key market pricing predictions and technology developments at all stages of the value chain indicate this transition to green energy is happening even more rapidly than we anticipated.

Frances also shed light on the risks of operating in a relatively new sector.

As with any pioneering industry, there are of course risks facing the HyEnergy Partners, in particular the current absence of certainty of land tenure for green hydrogen projects or a comprehensive legislative regime to govern the industry.

But what is clear to us is that all stakeholders want the green hydrogen industry to succeed, that solutions will be found in a collaborative manner to the current obstacles to the development of the industry and that there is a recognition that the HyEnergy Partners are a key participant in the industry.

About the Province Resources share price

The Province Resources share price has surged an eye-watering 1,620% year to date.

The sharp surge was driven by the company’s acquisition of Ozexco Pty Ltd. This gave it access to a number of exploration licence applications in the Gascoyne region of Western Australia.

The company’s shares surged 458% from 2.5 cents to 14.5 cents on the day of the announcement.

The post Why the Province Resources (ASX:PRL) share price is up 9% on Friday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Province Resources right now?

Before you consider Province Resources, 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 Province Resources 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 Province Resources (ASX:PRL) share price is up 7%

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!