Why is the Vital Metals (ASX:VML) share price up 7% on Thursday?

The rare earth explorer is outperforming the broader market today.

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The Vital Metals Limited (ASX: VML) share price is soaring higher today despite no news having been released by the company.

However, its stock is also flying off the shelves. Right now, nearly 30 million shares in Vital Metals have swapped hands today in just 613 transactions.

For context, over the last 4 weeks, an average session sees around 13.5 million Vital Metals shares traded.

At the time of writing, the Vital Metals share price is 6.1 cents, 8.93% higher than its previous closing price.

That's better than the performance of the broader market.

Vital Metals doesn't call the S&P/ASX 200 Index (ASX: XJO) home. However, it's worth noting that the index has fallen 0.8%. Meanwhile, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has gained 2.56%.

Let's take a closer look at the market's enthusiasm for the rare earth metals producer.  

Miner standing and smiling in a mine field.

Image source: Getty Images

A quick refresher

Vital Metals is a rare earths producer with one project in Canada and another in Tanzania.

The company began mining ore from its Canadian Nechalacho Project in June 2021.

Vital Metals also owns the Wigu Hill Project, located in Tanzania. The company's waiting for a mining licence to be issued for the project.

Vital Metals has also recently entered agreements to acquire 2 heavy metals projects, both located in Canada.

What's driving the Vital Metals share price today?

In short, there's no obvious reason why the market's interest in Vital Metals has increased today.

November has been quiet for the company. In fact, the last time the market heard from Vital Metals was on 29 October when it released its quarterly activities and cash flow report.

But whatever the reason, today's rally seems to have pulled the Vital Metals share price out of a 10-day long slump.

Right now, the company's shares are trading for 90% more than they were at the start of 2021. They've also gained 117% since this time last year.

Motley Fool contributor Brooke Cooper has no position 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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