Here’s what might be driving the company’s stock higher…
The post Why is the Mineral Resources (ASX:MIN) share price having such a cracking start to 2022? appeared first on The Motley Fool Australia. –
The Mineral Resources Limited (ASX: MIN) share price has started the new year off with a bang.
Its shares are currently trading for around 15% more than they were at the end of 2021. That’s despite no news having been released by the company.
At the time of writing, the Mineral Resources share price is $64.81, 3.83% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.63% today and 0.55% since the final close of 2021.
Let’s take a look at what might have helped send the mining services company’s stock higher.
What’s been driving the Mineral Resources share price lately?
While there’s no clear reason behind the stock’s surge in 2022, it’s not alone in the green.
In fact, the majority of its peers are also enjoying the new year. Since the ASX closed on 31 December 2021, the S&P/ASX 200 Materials Index (ASX: XMJ) has gained 7.25%.
The Pilbara Minerals Ltd (ASX: PLS) share price is one of the pack’s leaders. The lithium producer’s stock can boast a 17.5% gain over that time frame.
Meanwhile, the stock of iron ore producer Champion Iron Ltd (ASX: CIA) has gained 17%.
Like those of Pilbara Minerals and Champion Iron, the Mineral Resources share price hasn’t been boosted by news for weeks. In fact, the market hasn’t heard price-sensitive news from the company since mid-December.
Then, on 13 December, the company’s joint venture partner Neometals Ltd (ASX: NMT) announced the pair will be to evaluating potentially commercialising their ELi lithium process at a Portugal-based refinery.
The following day, Mineral Resources announced it will be developing a lithium resource in Western Australia as part of another joint venture.
The Mineral Resources share price gained 3.8% over the course of the two days. It has since gained another 31%.
The post Why is the Mineral Resources (ASX:MIN) share price having such a cracking start to 2022? appeared first on The Motley Fool Australia.
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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.