Why the QEM (ASX:QEM) share price catapulted 37% today

The QEM Limited (ASX: QEM) share price is rising after news of a new project management specialist for the company’s Julia Creek project.

| More on:
A drawing of a rocket follows a chart up, indicating share price lift

Image source: Getty Images

The QEM Ltd (ASX: QEM) share price powered up today on news of a new project management specialist for the company’s green hydrogen development.

At the time of writing, the QEM share price has gained a huge 37%. Shares in the exploration and development company are currently swapping hands for 24 cents. 

Let’s take a closer look at the announcement made by the company this morning.

New project management 

Today’s gains for the QEM share price come after the company shared that it has signed an execution strategy agreement with the project management consultant Siecap.

The agreement will see the Brisbane-based consultancy company assume a project management role at QEM.

It will manage execution strategies for mining, extracting, processing, and the Julia Creek project, where QEM will be exporting vanadium pentoxide and transport fuels as well as green hydrogen. 

Siecap will also be responsible for grants coordination. Previously, QEM has stated its Julia Creek project could be eligible for a number of grants. These include the $2.47 billion Northern Australian Infrastructure Facility and the $24 million Queensland Hydrogen Industry Strategy funding commitment.

In its release, the company stated that Siecap could be working to support the progressing of Julia Creek’s pre-feasibility study in the future.

Commentary from management

QEM’s managing director Gavin Loyden commented on the agreement, stating it will strengthen the company’s future plans.

With the continued progression of our Julia Creek vanadium and oil shale project and green hydrogen strategy, this Agreement will streamline our broader business strategy to drive these two intertwined developments forward as efficiently as possible,

Siecap has a deep knowledge of the sector and policy environment QEM operates in, making them the optimal choice to assist us in successfully executing this.

QEM share price snapshot

The QEM share price rose dramatically when the company announced its green hydrogen strategy in March, and it’s been performing well since.

Currently, the QEM share price is up 161% year to date. It’s also up by 235% over the last 12 months.

The company has a market capitalisation of around $23 million, with approximately 100 million shares outstanding.

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

*Returns as of January 12th 2022

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.

More on Resources Shares

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Resources Shares

Fortescue share price on watch after Twiggy returns to top job

Fortescue has made a number of leadership changes...

Read more »

asx share price growth represented by cartoon man flexing biceps in front of charged battery
Resources Shares

Lighting up the market: ASX lithium stocks surge again on Tuesday

Chalk up another green day for lithium stocks...

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Broker Notes

Broker names 3 reasons the South32 share price could be cheap

South32 shares could be great value according to one leading broker...

Read more »

a man in a hard hat and checkered shirt holds paperwork in one hand as he holds his hands upwards in an enquiring manner as though asking a question or exasperated by uncertainty.
Resources Shares

The Poseidon Nickel share price has dumped 24% in a month. What’s happening?

Why is the Poseidon Nickel share price struggling so much?

Read more »

Resources Shares

Why is the Lynas share price powering ahead today?

Shares in the rare earths company are off to a great start this week.

Read more »

A green fully charged battery symbol surrounded by green charge lights representing the surging Vulcan share price today
Resources Shares

Here’s why the Core Lithium share price is racing higher today

This lithium share is having a strong day...

Read more »

Resources Shares

Critical Resources share price leaps 12% on latest lithium project news

Shares in the emerging base metals company are up and away today.

Read more »

Three satisfied Whitehaven coal miners with their arms crossed looking at the camera proudly
Resources Shares

Oz Minerals share price rallies on potential $200m acquisition

Big news for the miner today has pushed the company's shares higher.

Read more »