The Kuniko Ltd (ASX: KNI) share price has been an incredible performer in recent days.
With the battery metals company's shares up 18% to $1.64 today, the Kuniko share price is now up over 100% since this time last week.
Image source: Getty Images
Why has the Kuniko share price doubled in a week?
The catalyst for the incredible rise by the Kuniko share price over the last few trading sessions appears to have been an announcement relating to the Skuterud Cobalt Project from last week.
According to the release, the Norwegian directorate of mining has approved Kuniko's application to undertake its planned seven-hole, 2,800-metre drilling campaign at the project.
Kuniko has identified three highly prospective targets, including two confident Co-Cu mineralisation targets. Though, it will still be a couple of months until drilling activities commence. The release notes that its drilling contractor, Norse Diamond Drilling, will be mobilising in the first week of May, while a preparatory site inspection by Norse is scheduled during March.
In addition, it advised that preparations for sampling across four project sites — Skuterud, Ringerike, UndalNyberget, and Nord-Helgeland — are proceeding smoothly.
What else?
The above bodes well for Kuniko given the current outlook for cobalt. As we covered here last week, the cobalt price was charging towards a new record high amid strong demand and tight supply.
Cobalt is used in the batteries of electric vehicles. So with McKinsey suggesting that one in four vehicles on the road will be electric by 2030, a lot of cobalt is going to be required to satisfy demand.
If Kuniko's drilling results are good, then it will put it in a strong position to negotiate offtake agreements with carmakers and battery manufacturers.
Stay tuned for those drilling results later this year.
