Motley Fool Australia

AVZ Minerals (ASX:AVZ) share price rockets 20% higher today before trading halt

Chalk-drawn rocket shown blasting off into space
Image source: Getty Images

The AVZ Minerals Ltd (ASX: AVZ) share price went through the roof today, gaining 20% by 3pm when trading in the shares was halted at the company’s request.

Today’s run higher is enough to put AVZ’s share price up 56% since 2 January. By comparison, the All Ordinaries (INDEXASX: XAO) is down 7%.

AVZ’s share price reached a 2020 high of 10 cents per share on 21 February before falling 50% through to 17 February during the COVID driven market rout. At the time of the trading halt, shares were worth 7.8 cents.

What does AVZ Minerals do?

AVZ Minerals is a mineral exploration company with a primary focus on lithium. The company states that its Manono Project may be one of the largest lithium-rich LCT (lithium, caesium, tantalum) pegmatite deposits in the world. Manono is located in the Democratic Republic of Congo (DRC).

What next for AVZ’s share price after the trading halt?

AVZ requested the trading halt this afternoon as it prepares an announcement in response to the ASX price query it received as well as an operation update announcement.

There is no market information available about what AVZ’s pending operation update may detail. Judging by the sharp run higher in the share price today the company may have some good news to share. Whether or not that warrants today’s share price surge remains to be seen.

Longer-term the company finds itself in a good space, provided its Manono project proves successful.

The global demand for lithium, a highly conductive metal, is forecast to grow strongly over the next decade as the transition to electric vehicles and battery storage for energy grids accelerates.

Another tailwind for Australian critical mineral miners came courtesy of US President Donald Trump.

Last week Trump took the historically extraordinary step of greenlighting US government investments into critical minerals projects in Australia. This comes as Trump continues to work to move the US away from its reliance on Chinese sources.

There’s no indication that AVZ Minerals is already a direct recipient of any US funding. But the AVZ share price will certainly be one to watch when the company releases its operation update and response to the ASX, expected either tomorrow or before market open on Monday.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles…