If I'd invested $5,000 in this ASX mining stock a week ago I'd have $11,923 today!

The little ASX mining stock has drawn rising interest from investors this past week.

| More on:
Female miner smiling at a mine site.

Image source: Getty Images

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

There's a little-known ASX mining stock that has handed investors absolutely stunning gains over the week gone by.

Last Monday, 5 February, the rare earths miner closed trading for 13 cents a share. At the time of writing, those same shares are swapping hands for 31 cents apiece, up an eye-popping 138% in a week.

Meaning, if I'd invested $5,000 in this ASX mining stock a week ago, I'd be sitting on $11,923 right now!

Any guesses?

If you said American Rare Earths Ltd (ASX: ARR), go to the head of the virtual class.

Here's why investors have been sending this ASX mining stock rocketing.

What's boosting the American Rare Earths share price?

A lot's been happening with American Rare Earths over the past trading week.

This appears to have been spurred by last Wednesday's announcement of an increase in the resource estimate at the company's Halleck Creek project, located in the US state of Wyoming.

The ASX mining stock reported that its resource estimate had increased by 64% to 2.34 billion tonnes at 3,166 parts per million (ppm) Total Rare Earth Oxides (TREO). Shares closed up 3.9% on Wednesday and 3.7% on Thursday before really going meteoric following Friday's investor presentation.

The ASX mining stock closed up 14% on Friday and gained another 50% on Monday. Shares are up 29% at the time of writing today.

Investor enthusiasm looks to have spiked after the company noted it has the largest ASX-listed portfolio of strategic rare earth element assets in the US. And with the upgraded resource estimated at its 100% owned flagship Halleck Creek Project, management reported the asset has the potential "to be the largest rare earths deposit in the US".

With the Western world eager to secure rare earths elements from sources outside of China, American Rare Earths looks to be well-placed to deliver the technology crucial elements.

How has this ASX mining stock performed longer term?

Most of the recent big gains for American Rare Earths shares have come over the past week.

The ASX mining stock is up 26% since this time last year and up 1,425% over five years.

Motley Fool contributor Bernd Struben 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 Share Gainers

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wild day for ASX 200 shares, with a new record high.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why Calix, Genex, Life360, and Spartan Resources shares are rising

These ASX shares are starting the week on a positive note. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Core Lithium, Life360, Syrah, and Xero shares are jumping today

These ASX shares are ending the week on a high. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Share Gainers

These were the best performing ASX 200 shares in February

These shares were making their shareholders smile last month.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising

These ASX shares are having a strong day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Should I buy Nvidia stock as an Australian investor?

Many Aussies are thinking of jumping on the bandwagon, but they need to think about these issues first.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough day for ASX 200 investors this Wednesday.

Read more »

A woman's hair is blown back and her face is in shock at this big news.
Share Gainers

Why APM, DroneShield, EOS, and NextDC shares are charging higher

These ASX shares are having a strong session on Wednesday. But why?

Read more »