Shares in Allegiance Coal Ltd (ASX: AHQ) are flying today, gaining 12.8% despite no new announcements to the ASX today. At the time of writing, the Allegiance share price is trading at 75 cents.
Earlier today, the Allegiance share price reached a new all-time high of 78 cents,18% higher than yesterday’s close.
Price of coal
The coal miner’s share price gains come while the price of coal is skyrocketing and China is attempting to cool it. Increasing global demand – alongside China’s embargo of Australian coal – has sent the commodity’s price soaring.
Currently, one tonne of coal is selling for US$107.04.
But enough of politics and commodity prices, let’s look at what Allegiance has been up to lately.
The last time we heard from Allegiance was in late May.
Then, Allegiance updated the market with news it had started production at the Blue Seam of its New Elk coal mine in the United States.
The operation’s start date had previously been delayed due to COVID-19 impacts.
According to Allegiance, the delay allowed it to sell 4 lots of 70,000 tonnes of cargo from the site to Asian steel mills. It was also in talks to sell another 10,000 to 20,000 tonnes to a steel mill in Europe.
Allegiance share price snapshot
2021 has been good to the Allegiance share price on the ASX. It’s gained 93% since the beginning of the year. It is also 110% higher than it was this time last year.
Allegiance has a market capitalisation of around $185 million, with approximately 280 million shares outstanding.