Up over 800% this year, the Element 25 (ASX:E25) share price slips on progress report

With the company's shares already up over 800% for the year, what's next for the Element 25 share price? We take a look at the latest report.

| More on:
A man holds his hands out and shrugs.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Element 25 Ltd (ASX: E25) shares leapt 2% higher on opening before giving back those gains in late morning trade. At the time of writing the Element 25 share price is down 1.5% to $1.58.

This comes following a progress report on its Butcherbird Manganese Project in Western Australia, released to the ASX this morning.

Element 25 shareholders have enjoyed a truly monumental year. Despite the shares tumbling 44% from 19 February through to 23 March during the wider COVID-19 market rout, the Element 25 share price is up a stellar 829% in 2020.

By comparison the All Ordinaries Index (ASX: XAO) is up just over 1%.

What did Element 25 report?

In this morning's progress update, Element 25 reported it had obtained environmental approvals for its 100% owned Butcherbird Project.

Western Australia's state government departments have given the green light to the company's Approval and Mining Proposal, and the State Mining Engineer has also provided its permission. These were the last hurdles Element 25 needed to clear before commencing construction at Butcherbird.

The company reported it plans to commence immediately, in line with its plans for first production in the first quarter of FY2021.

According to Element 25, Butcherbird is Australia's largest onshore manganese deposit, with some 260 million tonnes of manganese ore in an area with high end local infrastructure.

The company recently finished a pre-feasibility study on developing the deposit in order to produce manganese concentrate for export to generate early cash flow with "a modest capital requirement".

Commenting on the regulatory approvals, Element 25 managing director Justin Brown said:

This is the culmination of an extensive environmental assessment and community consultation process and it allows E25 to continue to rapidly progress its mine development and construction plans. The company has had an accelerated development timeline in place form the start and the fact that it continues to deliver the project on time and on budget is a testament to the dedication of the E25 team.

What does the company do?

Element 25 is engaged in the acquisition and exploration of metal properties in Australia. Its projects include Holleton, Butcherbird Manganese, Butcherbird Copper, Green Dam, Mount Padbury, and Pinnacles Cobalt/Nickel.

Element 25 shares first began trading on the ASX in November 2006. Based on the current Element 25 share price, the company has a market capitalisation of around $220 million.

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another strong showing from the share market today.

Read more »

Three miners looking at a tablet.
Resources Shares

Own ASX mining shares? Experts say an upswing in commodity prices has begun

HSBC economists Paul Bloxham and Jamie Culling explain why global commodity prices are rising.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brambles, Lifestyle Communities, Northern Star, and Select Harvests shares are sinking

These shares are having a tough session. But why?

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Share Market News

Will the Reserve Bank wait for the US Fed to cut interest rates first?

Here's when AMP thinks interest rates will be cut in the US, Australia, New Zealand, Canada and the Eurozone.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Healthco Healthcare, Medadvisor, Ramsay Health Care, and Tamboran shares are rising

These shares are having a strong session. But why?

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Share Gainers

If you invested $6,000 in Mesoblast shares a month ago you'd have $15,636 now!

Mesoblast shares have been on a tear this past month. But why?

Read more »

Gold bars on top of gold coins.
Gold

Is it too late to buy gold as an investment in 2024?

Can we still take advantage of gold at new record highs?

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Mergers & Acquisitions

Wesfarmers shares baulk on fresh acquisition gossip

A healthcare company gone nowhere in a decade might be on Wesfarmers' radar.

Read more »