Shares of Bushveld Minerals Limited (LON: BMN) surged 9.39% despite the vanadium mining company not making any major announcements in the recent past.
The miner’s shares have been on a sustained uptrend since December 21st when it broke above the 15p resistance level and is now up 53.3% since then.
Bushveld’s rally is part of a larger trend among precious metals miners that saw their shares rise substantially towards the end of last year.
The company’s last announcement was in late November when it revealed that Vox Royalty Corp had acquired royalty rights over its Brits mine via a binding agreement with Sable Metals and Minerals Pty Ltd.
Bushveld is one of only three companies that operate primary vanadium mines in the world and owns two of the four operating primary vanadium processing facilities and currently produces approximately 3,000 tonnes of vanadium annually.
The firm is well positioned across the vanadium value chain given that it produces the precious metal and also manufactures energy storage components from the vanadium, which it then sells to buyers in the steel, energy and chemical sector.
Given analysts upbeat outlook on vanadium prices in 2021 and Bushveld’s medium term goal of organically increasing vanadium production up to 8,400 metric tonnes, the company’s prospects are quite promising.
Traders interested in the company would be best served waiting for a significant pullback before establishing any new positions as its price is quite extended.*
*This is not investment advice.
Bushveld Minerals share price
Bushveld Minerals share price surged 9.39% to trade at 23.3p having rallied from Thursday’s closing price of 21.3p.