One of the best performers on the Australian share market over the last couple of months has been the Greenland Minerals and Energy Limited (ASX: GGG) share price.
Following another 13.5% gain this morning, the company's shares have now rallied a massive 150% higher since the end of March.
What is Greenland Minerals and Energy?
Greenland Minerals and Energy is an exploration and development company focused on developing high-quality mineral projects in Greenland.
Its flagship project is the Kvanefjeld Rare Earth Project which has the potential to be developed as a long-life, low cost, and large-scale producer of rare earth elements. These are key enablers to the electrification of transport systems.
Why are its shares up 150% in two months?
There have been a couple of catalysts for its impressive share price performance over the last couple of months.
The first is the trade war between the United States and China. There is speculation that China may cut off the supply of rare earths to the United States in retaliation for tariff increases and the Huawei ban.
This has sent the shares of rare earth producers such as Lynas Corporation Ltd (ASX: LYC) and Greenland Minerals and Energy hurtling higher.
In addition to this, earlier this month the company released an update on the performance of the optimised rare earth refinery circuit for the Kvanefjeld Project and its positive economic implications.
The company's managing director, Dr John Mair, was very pleased with the performance.
He said: "Recoveries and operating costs have now been finalised for the optimised Kvanefjeld Feasibility Study, and the results are exceptional. The low operating costs reflect the large output and simple, highly efficient processing that are key project advantages."
He added: "The improvements are the result of customised metallurgical program led by our major shareholder Shenghe Resources and have the project on track to be a high output, low cost producer of rare earths, over an initial 37-year mine life. We anticipate updates on the optimised capital costs in the coming weeks."
All in all, Dr Mair believes the "case continues to strengthen for Kvanefjeld to be developed as a major supplier of magnet metals – critical to the electrification of transport systems, wind energy, and green technologies."
