The last 12 months on the ASX have been a rollercoaster for the EcoGraf Limited (ASX: EGR) share price. At the time of writing, the EcoGraf share price is trading for 62 cents, down 3.88%. However, overall the share price is up 940% over the last 12 months. As well as 267% year to date.
A year ago, you could have grabbed a share in EcoGraf for a mere 6 cents. Now, the EcoGraf share price is 63 cents apiece.
So, what’s driving the graphite producers share price? Let’s take a deep dive into EcoGraf’s last 12 months on the ASX.
What does EcoGraf do?
EcoGraf produces battery graphite for electric vehicles and lithium-ion battery manufacturers.
It also has a leader in the recycling graphite from disused lithium-ion batteries.
The company mines graphite from Tanzania. It is in the process of developing a processing plant in Kwinana, Western Australia.
Battery business boom
EcoGraf’s meteoric share price rise didn’t gain huge traction until January 2021.
Then, with no warning at all, it shot up 116% over a week without a word of news from the company. When questioned by the ASX as to why it answered that growing interest in the lithium battery sector and its purification technology may have been to blame.
Then, at the beginning of last month, the company’s Kwinana facility was awarded major project status by the Australian Federal Government. It then announced the Tanzanian Government had approved its $60 million debt facility for its Epanko Graphite Mine.
Though the EcoGraf share price continues to be one of the ASX huge gainers of 2021, the excitement surrounding it at the beginning of the year seems to have died down.
Since the middle of February, it has dropped by 43%. Whether EcoGraf shares will regain their spark, we can only wait to find out.
But investors who got on board this time last year can still rub their hands with glee.
EcoGraf Limited share price snapshot
At the time of writing, the EcoGraf share price has fallen by 3% since yesterday’s close. Today’s drop is just the latest, as the company’s shares are down 8% this month.
EcoGraf has a market capitalisation of around $293 million, with approximately 454 million shares outstanding.
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 February 15th 2021
Motley Fool contributor Brooke Cooper 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.
- The Payright (ASX:PYR) share price is soaring 12%. Here’s why – April 12, 2021 12:16pm
- Should retirement savings be assumed bequests? Government says no – April 12, 2021 10:54am
- Antipa (ASX:AZY) share price jumps 7%. Here’s why – April 12, 2021 10:27am