Why is the Neometals share price surging 10% today?

Neometals joins the list of winners today.

Key points
  • Neometals shares are rallying on Thursday on no news 
  • The share has bounced from 6-month lows to reverse a longer-term downtrend 
  • In the last 12 months, the Neometals share price has secured a 110% gain 

The Neometals Ltd (ASX: NMT) share price is surging 10% higher on Thursday and now rests at $1.01 apiece.

Investors have bid the Neometals share price higher today on no news.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has spiked nearly 1% into the green today. Year to date returns for both are seen below.

TradingView Chart
Rising rocket with dollar signs.

Image source: Getty Images

What's up with the Neometals share price?

Neometals shares have bounced from 6-month lows today. The company attracted buyers when shares were fetching 92 cents apiece at the close yesterday.

With the share price sliding from former highs of $1.95 in April, selling pressure has been on the stock and prices have now traced 39% lower this year to date.

The share jumped back on 13 May when the company announced a deal with Mercedes Benz to build a lithium-ion battery recycling plant.

However, the joy was short-lived and the share continued in its downtrend soon afterwards. The company did release an investor presentation today, although nothing to be considered price-sensitive.

In the update, Neometals explained that it is an "emerging, sustainable battery materials producer… underpinned by proprietary, green, processing technologies [with] 16 granted patents [and] 54 Patents pending."

Investors certainly don't appear to have reacted poorly to the update, that's for sure.

Alas, despite no market-sensitive updates today, investors have bid the share upwards in line with strengths in the wider sector.

Indices tracking the materials and mining sectors are each booking gains today, reversing downward trends in both segments.

In the last 12 months, the Neometals share price has secured a 110% gain, despite trading down in 2022.

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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