Key points
- The Essential Metals share price is up 16% this afternoon, trading at 47 cents
- The gain follows the release of the company's quarterly report
- Within the report, the company outlined its exploration activities and strong cash position
The Essential Metals Ltd (ASX: ESS) share price is surging on Friday after the company released its activities and cash flow report for the December quarter.
At the time of writing, shares in Essential Metals are swapping hands for 47 cents. That represents a 16.05% gain on the company's previous close.
Essential Metals share price gains on strong financial position
- Last quarter, the company received assay results from the Dome North project
- It also began another drilling campaign at Dome North
- It had $9 million cash on hand at the end of the quarter
- Finally, it worked to divest a Canadian asset
Over the quarter just been, Essential Metals received assay results from a 5,934m reverse circulation drill program completed at the Dome North lithium project in Western Australia earlier last year, with the best results found at the Cade Deposit.
Additionally, another 13-hole diamond drill program began at the project in December.
Finally, the company completed a baseline environmental survey – part of its activities to prepare Dome North for development.
Also over the quarter, Essential Metals received $400,000 from Australian Nickel Company as a milestone payment in accordance with the Blair–Golden Ridge Nickel Farm-in/Joint Venture.
As of 31 December, the company had $8.99 million of cash in the bank and no debt. That's enough to fund it for another 12 quarters of similar activities.
What else happened during the quarter?
The company also worked to sell its 51% interest in Canada's Mavis Lake lithium project last quarter.
The asset was sold to Critical Resources Ltd (ASX: CRR). Though, the sale wasn't finalised until after the quarter's end.
It saw Essential Metals walk away with $750,000 in cash – 50% withheld for Canadian tax purposes – and 34 million Critical Resources shares calculated at 2.2 cents each.
Right now, the Critical Resources share price is around 10 cents.
The Essential Metals share price gained 8% after the company announced the divestment in mid-October.
What's next?
The company is currently continuing the 13-hole diamond drill program at Dome North. That's expected to be completed in mid-February.
Additionally, it recently began a 30-hole air-core drilling program to follow up on anomalism from the previous program at Dome North.
Essential Metals share price snapshot
This year has been particularly good to the Essential Metals share price.
It has gained a whopping 135% since the final close of 2021. It is also 176% higher than it was this time last year.
