The Sunrise Energy Metals Ltd (ASX: SRL) share price shot for the sky this morning, rising by almost 13% in early trade. At the time of writing, shares in the mineral exploration company have pulled back slightly and are trading for $2.35 – up 5.86% on Friday’s close. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.07% higher.
Today’s price leap comes as the company announced a “bonanza grade platinum intersection” from one of its sites.
Let’s take a closer look at today’s news and what it means for the Sunrise share price.
Why the Sunrise share price is rising
In a statement to the ASX, Sunrise Energy Metals (formerly Clean TeQ Holdings) says it has found “significant” results from its platinum development at the Sunrise Project in New South Wales.
The best result, according to the company, was a 0.6m wide ore containing 129g per tonne of platinum, 1.23g per tonne of palladium, 1.79g per tonne of rhodium, 4.0g per tonne of iridium, 0.89g per tonne of osmium, and 0.28g per tonne of ruthenium.
Sunrise says its drilling results show the potential for even greater finds in the Phoenix Platinum Zone, which is within the Project.
Collectively, the metals found in this ore sample are known as platinum group elements (PGE). The large find by the company is pleasing investors, judging by the performance of the Sunrise share price this morning.
Sunrise Energy Metals Co-Chair, Robert Friedland, said:
We have long suspected that the Sunrise laterite may be the weathered surface expression of an Alaskan-style dunitic system that lies beneath – in the late 19th century this area was the world’s largest source of platinum and remains the site of the only primary platinum mine in Australia.
Although it’s still early days for this new and exciting development, this stunningly high-grade platinum intercept is highly encouraging in terms of the potential for what may lie below this amazing Sunrise ore body. We will be following up this initial success with great enthusiasm.
PGE commodity trading
PGE metals have been increasing in price on the commodities market since the beginning of the year.
Platinum is 12.77% greater (US $1,202.43 per troy ounce), palladium is up 20.29% (US $2,945.90 per troy ounce), and rhodium is an incredible 73.53% higher since the start of 2021 (US $29,500 per troy ounce).
According to the website Trading Economics, PGE metals are expected to continue their upward climb for the foreseeable future, as government and industry invests in greener technologies. PGE metals are used as catalysts to lower the emissions from combustible car engines.
Sunrise share price snapshot
Over the past 12 months, the Sunrise share price has increased 14%. It is, however, 38% lower compared to its 52-week high of $3.85. This record was achieved in September 2020.
Given its current valuation, Sunrise Energy Metals has a market capitalisation of $196 million.