The S&P/ASX 300 Index (ASX: XKO) is down 0.7% today, but don't blame this surging ASX 300 stock.
The outperforming company in question is titanium products producer Iperionx Ltd (ASX: IPX).
The Iperionx share price closed on Friday at $14.31. In morning trade on Monday, shares are changing hands for $4.64 apiece, up 12.3%. This sees shares up a whopping 114% since this time last year.
Today's fresh surge comes as investors respond enthusiastically to the announcement of a new United States government contract award.
Here's what's happening.
ASX 300 stock leaps on $74 million contract
Investors are bidding up Iperionx shares after the ASX 300 stock reported it has been awarded a contract by the US Department of Defense (DoD).
The contract, valued at up to US$47.1 million (AU$74.2 million) in funding, is intended to strengthen the US Defense Industrial Base by accelerating the development of a low-cost, integrated mineral-to-metal titanium supply chain on US soil.
According to the release, the partnership will see the Dod and Iperionx invest a combined US$70.7 million to fund a two-phase development program over a two-year period.
The ASX 300 stock will see the DoD invest US$5 million as part of the initial phase through the Industrial Base Analysis and Sustainment (IBAS) program.
Iperionx will contribute US$1 million to expedite the Titan Critical Minerals Project in Tennessee to 'shovel-ready' status. The project was said to represent "an important milestone" in securing a new domestic source of titanium, rare earths, and zircon critical minerals for the US.
As for the other US$42.1 million awarded under the contract, Iperionx expects this to be obligated by the DoD over the duration of the agreement. The company said the funds will go to facilitating vertical integration and increased titanium production capacity at its Titanium Manufacturing Campus in the US state of Virginia.
What did management say?
Commenting on the contract award boosting the ASX 300 stock today, Iperionx CEO Anastasios Arima said, "This award is a pivotal moment in Iperionx's mission to re-shore the US titanium industry."
Arima added:
For too long, American industry has been reliant on foreign-controlled supply chains for this critical high-strength metal. Iperionx's proprietary technologies, combined with the Titan Project, offer a pathway for a resilient end-to-end US titanium supply chain. We are proud to be selected by the DoD as a key partner in strengthening US industrial and defence capabilities.
And it appears investors in the ASX 300 stock have US President Donald Trump to thank for today's strong rally.
According to the company, "This funding from the DoD's IBAS program reflects the Trump Administration's priority to secure domestic critical minerals and metals supply chains and to ensure resilient US manufacturing capabilities."
