Blackstone Minerals (ASX:BSX) share price climbs on nickel news

The company has presented a positive nickel update to investors

| More on:
One female and two male construction workers laugh on site.

Image source: Getty Images

The Blackstone Minerals Ltd (ASX: BSX) share price is in the green today after the company provided a nickel update about its project in Vietnam.

Shares in the mining exploration company were swapping hands at 56 cents apiece in afternoon trading, up nearly 1%. They were as high as 59 cents in early trade.

What did the company announce?

The Blackstone Minerals share price is climbing after the company provided an update on its Ta Khoa nickel project in northern Vietnam. The company holds a 90% stake in the project.

This resource includes the Ban Phuc and Ban Khoa disseminated sulphide (DS) deposits and the Ban Chang and King Snake massive sulphide vein (MSV) deposits.

A drilling expedition over the past year has uncovered 485 kilotonnes of nickel at the project, representing a 73% increase.

Commenting on the news driving the Blackstone Minerals share price, managing director Scott Williamson said:

An aggressive drill over the past 12 months has culminated into a global Ta Khoa mineral resource of enviable scale and increased confidence. Our mineral resource is an early indication of the potential of the Ta Koa nickel sulphide district, with further agressive testing already ongoing.

Ban Phuc, our large bulk tonnage disseminated sulphide deposit, will underpin base load feed to a large concentrator that is being examined in our upstream pre-feasibility study.

Ban Chang and King Snake are the first of many high-grade massive sulphide opportunities and the company continues to work diligently to increase surety of nickel supply for our downstream refinery in Vietnam, with exploration and resource delineation at Ta Khoa being a core part of our strategy.

What else is happening?

After releasing the nickel update to the market, Blackstone Minerals advised investors it has completed a share placement.

The company placed 56,692,782 new shares on the market at 58 cents, raising nearly $33 million before costs. Shareholder approval for this placement was received on December 16. An earlier share placement on November 10 raised $55 million.

Blackstone Minerals share price snapshot

The Blackstone Minerals share price has soared in the past 12 months, gaining 53%. Year to date, the company’s shares are up 47%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned more than 11% to investors in the past year.

Shares in the Blackstone have stagnated over the past month and are down 4% in the past week.

The company commands a market capitalisation of roughly $218 million based on the current share price.

Should you invest $1,000 in Blackstone Minerals right now?

Before you consider Blackstone Minerals, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Blackstone Minerals wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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.

More on Resources Shares

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Resources Shares

Is the BHP share price too exposed to the downside risks of China?

This could be a pressing question for the miner.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

How big will the Rio Tinto dividend be in 2022?

Let's analyse and find out.

Read more »

Female miner smiling while inspecting a mine site with another miner.
Resources Shares

Why did the South32 share price beat the other ASX 200 miners today?

The South32 share price was a standout today in the ASX resources sector. Here's why

Read more »

a man wearing a suit holds his arms aloft with a smile on his face attached to a large stylised lithium battery with green charging symbols on it.
Resources Shares

Why I think the Allkem share price is in the buy zone

Here's why I think Allkem is a lithium share to buy right now...

Read more »

A green-caped superhero reveals their identity with a big dollar sign on their chest.
Resources Shares

Is the Fortescue Future Industries hydrogen dream more fantasy than feasible?

What will it take to achieve full-scale green hydrogen production?

Read more »

Miner holding cash which represents dividends.
Share Gainers

If you’d bought $10,000 of Pilbara Minerals shares 10 years ago, congratulations! Here’s what you’d have now

You won't believe how much you would have pocketed if you had bought Pilbara Minerals shares a decade ago.

Read more »

Sad investor watching the financial stock market crash on his laptop computer.
Resources Shares

Why has the Australian Vanadium share price crashed 31% in a month?

Australian Vanadium shares are falling out of the sky. What's gone wrong?

Read more »

A group of people in suits watch as a man puts his hand up to take the opportunity.
Resources Shares

Falling ASX 200 mining shares ‘an opportunity to invest in sector leaders’: broker

The big miners haven't yet performed as well as many analysts expected, given the big lift in commodity prices.

Read more »