The Renascor Resources share price is having a brilliant month of growth. Here’s why.
The post The Renascor Resources (ASX:RNU) share price is up 41% in 30 days appeared first on The Motley Fool Australia. –
The past 30 days have been fantastic for the Renascor Resources Ltd (ASX: RNU) share price, following news of an offtake agreement and successful trials.
This time last month, the Renascor share price was 9.2 cents. Right now, it is 13 cents, 4.1% higher than its previous close and 41.3% higher than it was 30 days ago.
Let’s take a closer look at what the graphite, copper, gold, and uranium explorer has been up to of late.
Renascor share price soars 41% in a month
Here’s why the Renascor share price has gained 41% since this time last month:
Over the past 30 days, Renascor has released 2 announcements on its plan to become a supplier of Australian-made and low-cost purified spherical graphite for lithium-ion battery anodes.
The first announcement declared Renascor had signed a memorandum of understanding (MOU) with South Korean conglomerate, POSCO. Under the agreement, POSCO will purchase 20,000 to 30,000 tonnes of Renasor’s purified spherical graphite each year.
The graphite is expected to come from Renascor’s South Australian battery anode material operation.
Included in its agreement with POSCO, Resascor has signed MOUs to supply up to 60,000 tonnes of purified spherical graphite each year.
Its proposed Stage 1 production capacity is around 30,000 tonnes per annum. To fill its remaining requirements, Renascor is undertaking feasibility work to increase its stage 1 production capacity. It is also looking to expand into stage 2. The Renascor share price gained a massive 30% on the back of the news.
Then, days later, the company announced it had successfully completed large scale pilot flotation trials.
The trials were testing the upstream component of Renascor’s planned graphite mine and battery anode material manufacturing operation. Over the course of the trials, 77.8 tonnes of ore from the Siviour deposit were processed into high purity graphite concentrates. Renascor plans to use it as feedstock to produce its purified spherical graphite.
The trials resulted in higher purity graphite concentrates than previous trials had achieved. That suggests there’s potential to improve the purity of the feedstock.
Renascor’s trials also offered strong validation of the flowsheet parameters adopted in its previous locked cycle flotation tests.
The Renascor share price gained 7.6% after the company announced the successful trials.
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Motley Fool contributor Brooke Cooper 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.