It’s been quite a ride for the natural resources company so far this year. We take a look at what’s been driving its soaring share price
The post Province Resources (ASX:PRL) share price rockets 1000% in 2021 appeared first on The Motley Fool Australia. –
The Province Resources Ltd (ASX: PRL) share price has had a bumper year thus far. Shares in the natural resources company are up by more than 1000% since the start of the year.
Province Resources shares opened the year at around 1.3 cents, hitting a high of 25 cents in late April. Since then, shares in the company have consolidated, and are currently trading in the range of 14 to 15 cents per share.
At the time of writing, the shares were swapping hands for 14.8 cents, up 13.46% on yesterday’s close.
Lets take a closer look at what’s been happening.
What’s been fuelling the Province Resources share price?
The initial catalyst for the ballistic move in Province Resources shares can be traced back to mid-February. Around this time, Province Resources announced the acquisition of its Industrial Minerals and Renewable Green Hydrogen project.
After trending higher, Province Resources shares went on to hit a high of 25 cents in late April.
Shares in the company surged on news that Province Resources had entered a binding memorandum with French-based company Total Eren.
The announcement noted both companies were to perform a feasibility study in view of potentially developing a major green hydrogen project in Western Australia.
Following the announcement, the Province Resources share price began to wane.
In addition, the company also launched an $18 million equity raising in May. In total, it issued 120 million shares at 15 cents.
Province Resources said funds raised will be put towards advancing the scoping and feasibility studies at its HyEnergy Zero Carbon Hydrogen project.
In addition, Province will also seek to further its mineral exploration portfolio.
More on Province Resources
Province is an ASX-listed natural resources company focused on mineral exploration, with projects in Australia and Sweden.
The company is currently investigating the growing green energy market and the potential of renewable green hydrogen in Australia.
In addition to launching projects and partnerships, Province Resources has been on the receiving end of favourable tailwinds in the green hydrogen sector.
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Motley Fool contributor Nikhil Gangaram 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.