Here's why the Magnum (ASX:MGU) share price is rising 6% today

The Magnum Mining and Exploration Ltd (ASX: MGU) share price is climbing after announcing progress on becoming a green steel producer.

| More on:
A boy looks up and points his fingers to the sky in celebration pose.

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

The Magnum Mining and Exploration Ltd (ASX: MGU) share price is on the move in mid-afternoon trade. This comes after the company announced progress on becoming a 'green' steel producer.

At the time of writing, the miner's shares are trading at 17 cents apiece, up 6.25%.

What did Magnum announce?

Investors seem pleased with the company's latest update, driving Magnum shares higher.

In its announcement, Magnum advised is has shipped Buena Vista iron ore samples to a number of international engineering firms. Specialising in hot briquetted iron (HBI) and pig iron manufacturing processes, the engineering firms will design a manufacturing plant.

Magnum also states that the facility will adopt mature and industrially proven technologies. Locally available biomass and green hydrogen supplied from its partner, AVF Energy, will also be used in the construction process. The company is aiming to produce environmentally-friendly HBI and high purity iron (HPI) products. Magnum will supply this to the United States and international steel markets. If successful, this will give the company a first-mover advantage against its competitors.

Furthermore, Magnum will finalise the plant design before the end of May 2021.

In addition, Magnum noted that it's currently in discussions for plant assembly services and operational assistance with several international firms. Further updates will be provided once the preliminary process design of the plant is available.

About the Buena Vista mine

Located in Nevada, the United States, the Buena Vista mine is positioned to become a green steel producer. The term 'green' refers to producing materials from waste products. The mine is also considered a significant magnetite mineral resource that has had $34 million invested in advancing the project.

Additionally, the mine has close access to rail, water, port, and power facilities.

Share price summary

The Magnum share price has accelerated over 325% over the past year, with most of those gains coming year-to-date. The company's shares reached an all-time high of 21 cents last week, before treading lower due to profit-taking.

Based on valuation grounds, Magnum commands a market capitalisation of around $72 million.

Motley Fool contributor Aaron Teboneras 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

Miner looking at a tablet.
Resources Shares

Where will BHP shares be in 3 years?

The miner has some big plans in the works. Here's my view on what could happen with BHP shares.

Read more »

Three happy construction workers on an infrastructure site have a chat.
Resources Shares

3 ASX mining sector shares to buy if you're afraid of commodity price impacts

These ASX mining shares are in the 'pick-and-shovel' business.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

2 'highly attractive' sold-off ASX mining shares to buy

These stocks could be worth digging into, according to one fund manager.

Read more »

happy mining worker fortescue share price
Share Gainers

Move over Lynas! How this ASX rare earths small-cap surged 106% in just 6 months

This ASX rare earths stock has more than doubled in less than half a year. But how?

Read more »

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery
Resources Shares

BHP share price marching higher amid legal cost sharing agreement with Vale

BHP and Vale face class actions in multiple nations relating to the 2015 Fundao Dam collapse in Brazil.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Will the BHP share price keep falling?

Can things get even worse for the ‘Big Australian’?

Read more »

A young man wearing a backpack in a city street crosses his fingers and hopes for the best.
Resources Shares

Here 3 ASX lithium shares to watch for FY25

Brokers see light in the ASX lithium sector.

Read more »

A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.
Resources Shares

I'd buy Fortescue shares today to generate $2,000 of monthly passive income

After the past five months’ sell-down, I think Fortescue shares provide a strong long-term passive income opportunity.

Read more »