Here's why the Element 25 (ASX:E25) share price is rocketing 18% today

Shares in the mining stock are soaring today. Here are the details

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The Element 25 Ltd (ASX: E25) share price is soaring today. The move comes after the Australian miner announced a promising development regarding its Butcherbird manganese project this morning.

At the time of writing, the Element 25 share price is up 17.5% at $1.41, having hit a high of $1.49 this morning.

New development in manganese project

In case you haven't heard of it, manganese is a fairly common element found around the world. However, it is critical to the production of steel and batteries.

And as batteries and renewable energy become ever more popular, the demand for manganese is growing.

The Australian miner holds the biggest onshore resource in the country — the Butcherbird manganese project in Pilbara, Western Australia.

This morning, the company announced the project was back up and running after it conducted logwasher repair and engineering modification tasks that were scheduled for late last month.

The company reported a failure in the logwasher shaft on 18 November last year, which affected production.

Production levels above normal

The miner also reported an increase in production since the repair halt, hitting a daily production record of 1,209 tonnes on Monday.

Modifications for plant efficiency were also undertaken during the halt, including improved access to the plant (for future maintenance and operations), reducing noise and dust pollution, and managing over-wear of the key components of the plant.

Looking ahead, Element 25 is focused on delivering continued manganese production through Q1 FY22.

Element 25 share price snapshot

The Element 25 share price was fairly quiet up until the beginning of the pandemic. In just one year from March 2020, shares jumped from 11 cents to $2.68 — an increase of 2,336%.

The miner's share price dropped back to a 52-week-low of $1.01 last month but has since rebounded by more than 40%.

The company has a market capitalisation of $183 million.

Motley Fool contributor Alice de Bruin 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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