The Mineral Resources Ltd (ASX: MIN) share price is driving ahead today and now trades 2.63% higher at $49.97.
The gain marks an 11% increase in the company's share price over the last month, as commodities extend a three-month rally that shows no sign of slowing down.
Mineral Resources shares bounced off a low of $43.72 in late February before retesting that level again in a double-bottom during March. They have since spiked to their current levels.
Why is the Mineral Resources share price rallying?
Mineral Resources has a portfolio of mining operations across lithium, manganese, and iron ore.
According to the company's website, it has a large footprint providing mining services to clients throughout Western Australia and the Northern Territory, operating mine sites in the Pilbara and Goldfields regions.
Each of these markets have strengthened over the past few months to now trade well in the green as of 2022.
Iron ore, for instance, has snaked its way 73% higher since November whereas lithium carbonate continues to set new all-time highs at 497,500 Chinese yuan per tonne on last check.
Given Mineral Resources' exposure to these resources on the mining level, it is considered a price taker which means its share price fluctuates with volatility in these commodities.
As markets for iron ore and lithium, in particular, have climbed since February so too has the Mineral Resources share price.
Mineral Resources also released an update on its Lockyer Deep-1 conventional gas exploration well today. The well is located in the northern Perth Basin in Western Australia.
The release wasn't price-sensitive but covered news of testing results.
The company advised of findings from a recent well testing at the site, saying it had achieved "an instantaneous maximum gas flow rate of 117 mmscf/d; excellent conventional reservoir quality and well deliverability encountered in the Kingia Sandstone; Gas characterised by low impurities of CO2 less than 4% and H2S less than 3 ppm; [and] Condensate recovered to surface with a preliminary condensate gas ratio (CGR) of 5-6 bbl/mmscf".
Speaking on the results, Mineral Resources Managing Director Chris Ellison said:
The Lockyer Deep-1 test results have confirmed our expectations regarding well deliverability, reservoir quality and gas composition. We will now undertake additional drilling as part of the ongoing evaluation of the resource. If developed, Lockyer Deep will provide low-cost energy security for Mineral Resources, our Joint Venture partners and our Tier 1 clients enabling the transition from diesel to cleaner natural gas as we work towards Net Zero Emissions by 2050
The Mineral Resources share price has jumped 34% in the past 12 months but has slipped 11% this year to date.
