Why is the Neometals share price up 5% today?

The advanced minerals and technology company is extending its gains on Wednesday.

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Key points
  • Neometals shares are extending this month's gains with another 5% lift today
  • Despite no news today, previous updates may be boosting the company's share price
  • In the last 12 months, the Neometals share price has climbed 107% into the green

The Neometals Ltd (ASX: NMT) share price is pushing higher on Wednesday.

At the time of writing, the share is trading 4.17% in the green at $1.00 apiece on no market-sensitive news. Earlier in the day, the share price hit an intraday high of $1.035.

In broader market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also trading almost 3% higher today.

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

Image source: Getty Images

What's up with the Neometals share price?

Two recent updates may be inflecting positively on the company's share price lately.

Firstly, the company noted that it could become a low-cost producer of the chemical element, vanadium.

Following a feasibility study at its Vanadium Recovery Project, estimates found the company could produce around 19 million pounds of vanadium each year at a net cost of US$4.38 a pound.

The project is seeking to recover vanadium from slag, a by-product of the steel-making process. Neo is working to obtain a 50:50 stake in a joint venture with a Scandanavian company.

Neometals then provided a second update. The company outlined reasons for the delay in completing the engineering and cost study (ECS) of its Primobius GmbH joint venture (JV).

It says the ECS will be delivered in two parts, an individual shredding plant and a hydrometallurgical refining plant. They are due for completion in July and Q4 FY23 respectively.

Delays are understood to be from the venture's focus on its Hilchenbach Spoke operation and fulfilling other agreements, TMF reported last week.

In the last 12 months, the Neometals share price has climbed 107% into the green.

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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