Why has the AVZ Minerals share price rocketed 34% in a month?

AVZ Minerals shares have been a stand out performer in recent times.

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asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

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Key points

  • AVZ Minerals add 1.31% to $1.16 to register a 34% gain in a month 
  • The company's shares have been a hot topic among investors as the lithium revolution takes off 
  • AVZ Minerals was recently added to the S&P/ASX 200 Index following a quarterly rebalance 

The AVZ Minerals Ltd (ASX: AVZ) share price has surged despite the company keeping relatively quiet throughout the past month.

In fact, the ASX-listed lithium player shares have powered ahead by 34% since this time last month.

At the time of writing, AVZ Minerals shares are up 1.31% to $1.16.

What's driving AVZ Minerals to extraordinary levels?

As one of the largest ASX-listed lithium players, investors have been taking advantage of the hype surrounding the lithium revolution.

Indeed, a lot of attention has been turned to the incredible rise in the spot price for lithium.

Over the past year alone, lithium carbonate has rocketed by more than 450% in value.

The battery making ingredient is expected to be adopted across a number of industries, notably the transitioning to electric vehicles.

Furthermore, AVZ Minerals was included in the S&P/ASX 200 Index on 21 March following a quarterly rebalance of the S&P/ASX Indices.

It appears the updated list has led investors to take advantage of the change.

In addition, most fund managers are required to adhere to their strict guidelines, which allows them to buy shares only within a certain index.

About the AVZ Minerals share price

AVZ Minerals shares have raced ahead by more than 550% since this time last year.

The company's share price reached an all-time high of $1.365 this week before treading lower in the past 2 days.

AVZ Minerals presides a market capitalisation of roughly $4 billion and has approximately 3.45 billion shares on its books.

Motley Fool contributor Aaron Teboneras 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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