Mineral Resources (ASX:MIN) share price storms higher on Wednesday

Shares in the mining services company continue their climb into the green.

The Mineral Resources Limited (ASX: MIN) share price extended its run into the green from the start of today's session.

Over the past month, mineral resources shares have pushed 11% higher on the charts.

Mineral's shares are now exchanging hands at $61.51 apiece, a 2.28% gain on the day.

A flaming orange arrow against a black background demonstrates the rising Pilbara Minerals share price today

Image source: Getty Images

What's behind Mineral Resources share price lately?

Mineral Resources' shares have been under pressure since it announced the 40% acquisition of RHIOJV from Red Hill Iron Limited (ASX: RHI).

The RHIOJV sites contain an iron ore grade of 56.44%, and the deal will close in early September.

The transaction came in at a total of approximately $400 million. Half of that amount will be paid once the first shipment of ore is sent for export.

Moreover, Red Hill receives a royalty under the agreement, with the fee comprised of 0.75% free onboard revenue.

In addition to these moves, analyst sentiment on Mineral shares appears to reflect a positive tone also.

For instance, brokers Citi and Goldman Sachs each reiterated their 12-month price targets on Mineral Resources shares.

Citi now has a price target of $65 on Mineral shares, after upgrading its target by 27%, whereas Goldman sees the Mineral Resources share price valued at $61.

Therefore, given the corresponding moves exhibited on its chart, it stands to reason this fundamental momentum in the company's growth engine has had some inflection on the Mineral Resources share price.

Mineral Resources share price snapshot

The Mineral Resources share price has outperformed this year, posting a gain of 65% since January 1. This extends the previous 12 month's return of 130%.

Shares in the mining services company faced some pressures last week, slipping 5% into the red at some point during the week.

Both of these results have outpaced the S&P/ASX 200 Index (ASX: XJO)'s gain of around 26% over the previous year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

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