Guess which ASX copper share is rocketing 49% on Wednesday?

This ASX micro-cap is suing the Polish Government.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The GreenX Metals share price is heading skywards today 
  • Its arbitration hearing for claims against the Polish Government has concluded 
  • GreenX Metals must now wait for a decision in the case 

It's a great day for the ASX copper share GreenX Metals Ltd (ASX: GRX) with its value skyrocketing on Wednesday.

GreenX Metals is engaged in the exploration and development of critical minerals resources projects. Its biggest focus is the Arctic Rift Copper (ARC) Project in Greenland.

The GreenX Metals share price is currently 49 cents, up 31% on yesterday's close.

But in earlier trading, the ASX copper share hit an intraday and 52-week high of 55 cents, up 48.6%.

A happy woman smiles as she looks at a tablet in a room with green plant life around her.

Image source: Getty Images

Why is this ASX copper share on fire today?

It's not what happened today but what happened yesterday that is likely pushing GreenX Metals higher.

The company announced the completion of its arbitration hearing regarding its claims against the Republic of Poland.

It's now a matter of waiting for the Arbitral Tribunal to render a decision in the case.

What's the legal case against Poland all about?

GreenX Metals is seeking damages of up to $1.3 billion in lost profits and damages arising from government actions that prevented the company from developing its Jan Karski and Debiensko projects.

According to GreenX Metals:

GreenX's dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko projects in Poland which effectively deprived GreenX of the entire value of its investments in Poland.

GreenX's investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there are a significant number of International Arbitration claims being bought against Poland.

GreenX Metals has made the claims under the Energy Charter Treaty (ECT) and the Australia-Poland Bilateral Investment Treaty (BIT).

GreenX Metals share price snapshot

With a market capitalisation of $94 million, GreenX Metals is a micro-cap among the ASX copper shares.

The GreenX Metals share price is up 111% in 2022. The company is part of the S&P/ASX 200 Materials Index (ASX: XMJ) which is up 3.5% this year.

This compares to a 6% dip in the S&P/ASX All Ordinaries Index (ASX: XAO) over the same period.

According to its website, GreenX Metals says: "Simply, there is no decarbonisation without copper …".

Motley Fool contributor Bronwyn Allen 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.

More on Materials Shares

Smiling couple sitting on a couch with laptops fist pump each other.
Materials Shares

Guess which ASX iron ore stock could rise 85% (hint, not Fortescue shares)

This stock could be dirt cheap at current levels according to Bell Potter.

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Materials Shares

This ASX lithium stock is bouncing back today. Here's why

Vulcan shares rise after a key construction milestone at its Lionheart project.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Materials Shares

IGO shares sink 14%. Here's what just spooked investors?

IGO shares fall as lithium operations offset a strong Nova performance.

Read more »

A woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.
Materials Shares

PLS shares jump 6% on record quarter and massive cash generation

The lithium miner is swimming in cash thanks to low costs and strong prices.

Read more »

A mining worker wearing a white hardhat and a high vis vest stands on a platform overlooking a huge mine, thinking about what comes next.
Materials Shares

Why are Fortescue shares falling today?

This iron ore giant was impacted by bad weather during the third quarter.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Materials Shares

2 ASX mining shares to buy with $2,000

Bell Potter has named these shares as top picks this month.

Read more »

Looking down on two African workers shaking hands over an agreement in an open pit mine.
Materials Shares

This ASX gold stock just made a key move. Here's why investors are watching closely

Shares lift as new funding deal supports project expansion...

Read more »

Man looking happy and excited as he looks at his mobile phone.
Materials Shares

BHP shares charge higher following third-quarter update

Let's see how the Big Australian performed during the quarter.

Read more »