Elmore Ltd (ASX: ELE) shares are exploding today on the one year anniversary of the minerals processing company rejoining the ASX.
The Elmore share price is currently 5 cents and up 51.52%. In earlier trading, it hit a 52-week high of 5.6 cents. By contrast, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.68% today.
Let's take a look at what is happening at the company.
Elmore shares up on 'monumental milestone'
The Elmore share price is lifting after the company announced it is starting commercial production at its Peko State 1 Magnetite Processing Plant in the Northern Territory.
The company is escalating production with a target of 350,000 tonnes per annum. This is the rail capacity limit. The plant was recently commissioned and Elmore started transporting magnetite product to the Darwin Port. Water has now been connected.
Elmore is also transitioning from daylight production to becoming a 24-hour site.
The company will sell magnetite from the plant and plans to add copper, cobalt, and gold to the mix. Elmore could fetch $US200 per tonne for the magnetite, based on recent pricing of the China Steel 65% Magnetite Concentrate Index.
Commenting on the news, Elmore managing director David Mendelawitz said:
Today marks exactly one year to the day since Elmore was reinstated to official quotation on the ASX. Whilst it hasn't been easy, we are very proud of what we have achieved against all odds, both in regards to return to shareholders and the delivery of our first, cornerstone project.
Commencement of commercial production at Peko is a monumental milestone for us as a small, start-up service company.
Elmore share price snapshot
The Elmore share price has soared 121% in the year to date and 143% over 12 months.
In the past month, Elmore shares have jumped 70%.
Elmore has a market capitalisation of about $27 million based on the current share price.
