Why the Helix (ASX:HLX) share price is rocketing 129%

The Helix Resources Ltd (ASX: HLX) share price is surging an incredible 129% today after a "massive" announcement.

| More on:
A miner reacts to a positive company report mobile phone representing rising iron ore price

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 Helix Resources Ltd (ASX: HLX) share price is surging today after announcing a "massive" copper find at one of its mining operations.

At the time of writing, shares in the mineral exploration company are up 128.5%, trading at 3.2 cents.

Let's take a closer look at today's announcement and what it means for the Helix share price.

What's up with the Helix share price?

In a statement to the ASX, Helix advised it has intersected an "intense copper sulphide mineralisation" approximately 80m down from a previous copper find at its Canbelego mine in New South Wales. A second hole found more copper sulphide deposits 90m down from another find in the mine.

The Canbelego mine is a joint venture between Helix and Aeris Resources Limited (ASX: AIS). Helix controls 70% of the project.

As a result of these latest finds, Helix says it will reassess the mineralisation prospects at the mine for a larger estimate in its next resources update. The previous estimate was for 1.2% copper.

The expectations for greater copper deposits are seeing investors rally around the Helix share price this morning.

Management commentary

Helix managing director Mike Rosenstreich said

This is an exciting hit – notably there is more massive copper mineralisation in this drill hole which is very encouraging for a high-grade copper zone when the assays come in. As a bonus, there is the possibility of a second copper position emerging after we intersected chalcopyrite veins much higher in this hole.

Canbelego is one of Helix's two advanced copper projects and a key objective of this drilling program and the EM surveys is to demonstrate the growth potential of the defined mineralisation at each of them. Clearly, these two recent drill holes at Canbelego have extended the copper mineralisation nearly 100 metres below the previous base of the mineralisation envelope, which I am sure will be confirmed by the assays expected in June.

Copper commodity price

Copper is currently trading for US$4.79 per pound on the commodities market. It is down from its record high of US $4.90 a pound from earlier this week. Despite this, the metal is still 18.4% higher than last month and an amazing 36.2% greater compared to the beginning of this year. In comparison, gold is up just 5.0% this month but down 3.5% in 2021.

The website Trading Economics says the price of copper is increasing due to increasing demand and decreasing supply. Demand is booming because of the rebounding global and economy and surging demand for green technology. Copper is an essential element in renewable technology production.

Trading Economics attributed the supply drop to "a lack of investment by large miners" and recent tax hikes on copper production in Chile. The South American nation is the largest copper producer in the world.

Helix share price snapshot

Over the past 12-months, the Helix share price has increased 254.5%. Its current price is a 52-week high for the company. The last time the Helix share price was at this level was in September 2018.

Helix has a market capitalisation of $49 million.

Motley Fool contributor Marc Sidarous 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 »