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

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

sdf

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.

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

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Is the Fortescue share price a buy for passive income?

Let’s dig into the potential of this mining giant.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Major miners fall as iron ore prices continue to sink

Waning Chinese demand and oversupply concerns push iron ore prices lower.   

Read more »

A mining worker clenches his fists celebrating success at sunset in the mine.
Resources Shares

Would I buy Pilbara Minerals shares?

Are investors missing an opportunity with this lithium stock?

Read more »

Three miners looking at a tablet.
Resources Shares

Here's the earnings forecast out to 2029 for BHP shares

Let’s dig into the predictions.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »

Female miner standing smiling in a mine.
Broker Notes

Why Macquarie predicts Pilbara Minerals shares could surge 71%

Macquarie forecasts a big rebound ahead for Pilbara Minerals shares. Let’s find out why.

Read more »

Two mining workers in orange high vis vests walk and talk at a mining site.
Resources Shares

ASX All Ords mining stock sinks on US silver acquisitions

Investors are bidding down the ASX All Ords miner on US acquisition news. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

How these 2 tailwinds could boost the BHP share price into 2026

A leading expert forecasts that BHP shares are set to recover. But why?

Read more »