Group 6 Metals shares have gained 24% since market close on 26 April to close at 25 cents apiece on Tuesday. In contrast, the S&P/ASX 200 Index (ASX: XJO) has fallen about 2% over the same time frame.

Let's take a look at what has impacted the Group 6 Metals share price.

Tungsten explorer

Group 6 Metals shares had a major boost between market close on 9 May and 17 May. The company's shares surged 50% to a peak of 27 cents before pulling back slightly.

Investors appeared to buy up Group 6 shares following the company's appearance on the ABC's flagship 'Four Corners' program.

The company is redeveloping the Dolphin Tungsten Mine on King Island, Tasmania. Tungsten is a critical rare metal that can be used in lithium-ion batteries for Electric Vehicles (EV). Electric vehicle sales doubled in 2021 from the previous year to 6.6 million units, an International Energy Agency report released yesterday states.

In an interview with the ABC, aired on 9 May, Group 6 Metals chairman Johann Jacobs revealed the company has fielded interest from the United States. The US government has reportedly approached the Australian company in the face of China's dominance of the tungsten market. Asked how often he had met with the US Embassy, Jacobs said:

Probably three over the last 12 months, and those discussions are continuing.

At this stage, they don't have any financial interest, but they certainly are very keen to see us progress and develop the mine because it's another supply chain…from a friendly nation. 

Construction at the Dolphin Tungsten Mine started in late January, with first concentrate sales earmarked for early 2023.

On 11 May, Group 6 addressed activity in its shares following the company's appearance in the media. In a statement approved by the board, Group 6 Metals noted the recent share price rises.

Following the broadcast of the program, there was a notable increase in the Company's share price and volume of shares traded on the market.

…the company reiterates its indicative timeline to achieving plant commissioning in early 2023 ahead of first shipment of tungsten concentrate in Q1 2023.

Share price snapshot

The Group 6 Metals share price has rocketed more than 74% year to date while it has climbed around 5% in the past year.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned more than 1% in the past year.

Group 6 Metals has a market capitalisation of about $159 million based on today's share price.

The post Why has the Group 6 Metals share price surged 24% in a month? appeared first on The Motley Fool Australia.

Let's take a look at which three ASX companies — all involved in developing minerals used in the manufacture of electric vehicles — are having a good year.

Arafura Resources Limited (ARU)

Arafura Resources shares have soared 67% year to date. The company is developing rare earths at the Nolans project in the Northern Territory. One major piece of news that drove the ASX mining share higher in March was a $30 million grant from the Federal Government. The grant will help fund a $90.8 million separation plant at the Nolans project.

Commenting on the news, managing director Gavin Lockyer said:

This grant is an exciting milestone for Arafura, recognising the strategic significance of the Nolans Project and its place in the future of critical minerals processing in Australia.

The company is hoping to supply about 5% of the world's NeodymiumPraseodymium (NdPr) demand from the Nolans project. Rare earths are a crucial component in the manufacture of electric vehicles (EV).

In more positive news for the company, Arafura was listed on the  All Ordinaries Index (ASX: XAO) in early March.

Green Technology Metals Ltd (GT1)

The Green Technology Metals share price has rocketed 58% year to date. The company is working on lithium projects at Root Lake, Seymour Lake, and Wisa Lake.

In major news for the ASX mining share in late April, Green Technology Metals announced major US lithium player Lithium Americas Corp (NYSE: LAC) will invest US$10 million in the company.

Drilling results in early April may have also helped the company's share price. Drilling at the Seymour lithium project in Ontario, Canada intercepted thick, high-grade lithium oxide.

Group 6 Metals Ltd (G6M)

The Group 6 Metals share price has surged 83% year to date. The company is redeveloping the Dolphin tungsten mine in Tasmania to explore tungsten. This is another rare metal that can be used in lithium-ion batteries.

This ASX mining share has recently received attention from the United States. Chairman Johann Jacobs has been in conversations with the US embassy lately about the mine. China has a global dominance in the tungsten market, but Group 6 provides a potentially new supply chain.

Commenting on the meetings with the US embassy, Jacobs said:

At this stage, they don't have any financial interest, but they certainly are very keen to see us progress and develop the mine because it's another supply chain… from a friendly nation.

In February, Group 6 reiterated its commitment to developing the Dolphin mine, describing it as the "highest-grade tungsten deposit of significant size in the Western World".

The post Battery-powered! 3 ASX mining shares up more than 50% in 2022 appeared first on The Motley Fool Australia.

According to Geoscience Australia, critical minerals are crucial elements for modern technologies, economies and national security.

There are several ASX-listed companies involved in the exploration, mining or production of three critical minerals: vanadium, tungsten, and cobalt.

Let's take a look at what these minerals are used for and which ASX shares are involved.

Vanadium

Vanadium is a silver-grey element used in steel alloys, nuclear reactors and space vehicles. Further, it is seen as a metal that could be used in the cathodes of batteries in electric vehicles (EV).

One vanadium share on the ASX is Australian Vanadium Ltd (ASX: AVL). The AVL share price has surged 181% over the past 12 months, and it's soaring 103% year to date. The company is exploring the Australian Vanadium Project in Western Australia.

Another vanadium explorer is Neometals Ltd (ASX: NMT), an ASX share working on vanadium recovery in Scandinavian countries. The Neometals share price has surged 154% in the past year but is down 10% since the start of 2022.

Tungsten

The critical mineral tungsten is another rare metal that can be used in the production of lithium-ion batteries. Group 6 Metals Ltd (ASX: G6M) is redeveloping a mine to explore tungsten in King Island, Tasmania. The company's share price has surged 40% year to date, although it has fallen 12% over the past 12 months.

ABC TV Four Corners viewers who tuned in to the documentary program this week would have seen Group 6 featured on the show. Chairman Johann Jacobs revealed the company was attracting interest from United States officials. He said he had held three meetings with the US embassy in 12 months, adding:

At this stage, they don't have any financial interest, but they certainly are very keen to see us progress and develop the mine because it's another supply chain… from a friendly nation.

Cobalt

Cobalt Blue Holdings Ltd (ASX: COB) is one ASX share exploring cobalt. The company has seen its shares surge 171% over the past 12 months and 86% year to date. In today's trade, the company's share price jumped nearly 14%.

In April, the company received a $15 million Federal Government grant for the Broken Hill Cobalt Project.

Cobalt is used in alloys, magnets and as a catalyst for the petroleum and chemical industries. The metal is also used in lithium-ion batteries in electric vehicles. Cobalt helps stop cathodes in the batteries from overheating.

Our final ASX share is cobalt explorer Jervois Global Ltd (ASX: JRV), which is exploring the critical mineral in Idaho, United States. Jervois shares have surged 87% in the past year and 27% year to date.

The post 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them) appeared first on The Motley Fool Australia.

The Group 6 Metals Ltd (ASX: G6M) share price soared 20% to close trading at 21 cents today. In contrast, the ASX 200 Materials Index fell 2.38%.

Let's take a look at why this ASX battery metals share could be having such a great day.

What's happening at Group 6 Metals?

Group 6 Metals shareholders may be reacting to recent media coverage on the company. Group 6 revealed its tungsten mine is garnering interest from the United States. Tungsten is a critical rare metal with future application in anode materials in lithium-ion batteries.

Speaking to Four Corners, executive chairman Johann Jacobs said the company has had three meetings with the US embassy in 12 months. He added:

…and those discussions are continuing. At this stage, they don't have any financial interest, but they certainly are very keen to see us progress and develop the mine because it's another supply chain… from a friendly nation. 

The United States is taking interest amid China's global dominance of the tungsten market, the ABC noted.

Group6 is planning to produce tungsten from the Dolphin Tungsten Mine on King Island, Tasmania. Construction at the mine commenced in late January. The company is redeveloping the mine and targeting first concentrate sales in the first quarter of 2023.

In a presentation to investors in May, the company said the mine is a "world-class quality deposit" that ranks better than its peers.

The company changed its ticker code on the ASX to G6M from King Island Scheelite Limited (ASX: KIS) in late November.

Share price snapshot

The Group 6 Metals share price exploded 45% year to date but it is down 4.55% in the past month.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed 5% in the year to date.

This ASX battery metals share has a market capitalisation of more than $132 million.

The post This ASX battery metals share rocketed 20% today. What's going on? appeared first on The Motley Fool Australia.

For decades the mine produced scheelite, a form of tungsten, until it was mothballed in 1992 when the price of the rare metal began to crash.

At its peak, the mine employed more than 500 people and produced a tidy income for the economy of King Island, off Tasmania, where the project is located.

Now, following shareholder approval, King Island Scheelite is set to redevelop the project and subsequently restart mining and processing of tungsten at the site.

Here are the details seemingly driving the King Island Scheelite share price today.

What did King Island Scheelite announce?

In addition to confirming the redevelopment of the mine, the company also advised it is "committed to long lead-time items by paying deposits, ensuring that the project will be completed as rapidly as possible".

It is set to commence the work program in the coming weeks. Earthworks are due to begin in December after the company ordered a heavy-duty Caterpillar D8 bulldozer.

According to King Island, the Dolphin project contains a JORC (2012) compliant indicated resource reserve of 4.43 million tonnes (Mt) at a grade of 0.92% tungsten oxide (WO3).

It also contains "probable mineral resources" and reserves of 9.6Mt at a grade of 0.90% WO3, plus another inferred resource of 1.76Mt @0.91% WO3.

The company also reckons it can produce average annual production of 400,000 tonnes of ore per annum, yielding 200,000 metric tonne units (mtu) of tungsten – with 1 mtu equal to 10kg.

It also has a mining lease on the site that is valid until 2029, according to the company's website.

What is tungsten, you might ask?

Tungsten is a rare metal that is found naturally on Earth. It is known as boasting the highest melting point of all known metals at 3,422ºC. It also has the highest tensile strength of any metal.

To put it short, tungsten is super tough and almost impossible to melt, making it perfect for high-stress environments.

For instance, given its durability, density, and hardness, it is often used in military applications – such as projectiles that need to pierce tank or aircraft armour.

However, it is also extensively used in applications like electrodes and heating elements, as well as in filaments for lights and cathodes due to its properties.

As of 10 November 2021, the Europe Tungsten APT 88.5% in Warehouse Rotterdam index, was up at US$315/tonne, having gained 43% in a single year.

What is management saying?

Speaking on the announcement fuelling the King Island Scheelite share price, executive chair Johann Jacobs said:

As we move into the next stage of the company's growth with the commencement of the redevelopment of the Dolphin Tungsten Mine, on behalf of all the board and management I wish to thank all of those who have assisted the company in reaching this pivotal moment. The company has worked tirelessly to progress to this stage, at which it is fully funded to commence its future trajectory to becoming a significant tungsten producer, and for all of those who have supported us on this journey, we thank you.

Jacobs continued:

The Dolphin Tungsten Mine is host to the highest grade tungsten deposit of significant size in the Western world, and we look forward to the recommencement of mining from this fantastic asset.

The King Island Scheelite share price has gained 64% over the past 12 months.

It has also rallied 72% this year to date, well ahead of the S&P/ASX 200 Index (ASX: XJO)'s return of almost 15% in the last year.

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Kind Island shares are trending down today after the Australian mining company announced a key update earlier.

Here's what we know.

What did King Island Scheelite announce?

King Island announced that it has secured funding commitments to proceed with the redevelopment of its wholly owned Dolphin Tungsten Project in Tasmania.

It also delivered an investor presentation on the raising, outlining the price.

Announced today was the completion of a $31 million equity raise at 14 cents per share, which also sees King Island investors' share count diluted by 222 million shares.

There are 2 tranches to the placement, made up of a blend of sophisticated and institutional investors plus the company's debt holders.

That price of 14 cents per share on which the equity raise was completed, represents a 19.4% discount to the company's 15-day volume weighted average share price as per the release, and a 12.5% discount to its current share price.

Kind Island Scheelite has raised a total of $88 million in 2021 to finance the redevelopment of the Dolphin site, including a $10 million leasing facility currently in negotiations.

The company intends to fund the purchase of "key equipment, mobile mining equipment, processing plant development, civil/infrastructure construction, working capital associated therewithin" with the net proceeds.

Consequently, the Dolphin tungsten project is expected to produce its first concentrate in the March quarter of 2023, as per the release.

Investors don't appear to be impressed by the moves, perhaps given the King Island Scheelite share price's performance this year to date.

Plus, an additional 222 million shares on issue means that current shareholders will be diluted by that amount.

As such, the value of their holdings will diminish slightly as the company's equity value is re-adjusted from the share issuance.

What did management say?

Speaking on the announcement, King Island Scheelite's executive chairperson Johan Jacobs said:

Our strategy has allowed us to move forward with our plan to redevelop King Island's Dolphin Tungsten Mine, which hosts one of the few remaining high quality tungsten deposits in the Western world. Having secured commitments for the funding, we can now continue to execute on our vision to develop world class tungsten mining operations in Tasmania.

King Island Scheelite share price snapshot

The King Island Scheelite share price has booked outsized returns over this past year to date, climbing 60% since January 1.

As such, shareholders have clipped the ticket on a whopping 167% gain over the past 12 months, more than 6x the return of the S&P/ASX 200 index (ASX: XJO)'s climb of 25% in that time.

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At market close, the mining company's shares finished at 18.5 cents, up 5.71%.

New offtake agreement

According to the release, King Island Scheelite advised it has secured an offtake agreement with physical commodity trader and merchant, Traxys.

Under the deal, 90,000 metric tonne units (equivalent to 10 kilograms) of tungsten trioxide will be supplied annually from King Island Scheelite's Dolphin Tungsten Project. Combined with the Wolfram agreement, this represents around 70% of the total annual production output from the mine.

King Island Scheelite noted that the agreement is for a total quantity of 330,000 units of tungsten trioxide. The processing plant has been commissioned and will operate until the order is completely fulfilled.

The price received each month for the concentrate will be dependent on market prices for Ammonium Para Tungstate (APT). Currently, APT is fetching for up to US$315 per metric unit tonne. The price has accelerated approximately 35% in 2021, despite COVID-19 impacts on the automotive and aviation sectors.

With the current price and exchange rates, the agreement translates to revenue of around $100 million for King Island Scheelite.

Previously, the company had entered into an agreement for tungsten trioxide with Kalon Resources, a wholly-owned subsidiary of Noble Group. However, certain financial milestones were not met, and a termination notice has been served. It is expected this will take effect on 10 November.

About the King Island Scheelite share price

Since the beginning of 2021, King Island Scheelite shares have risen 90%. Although, when factoring in the last 12 months, these gains extend to over 200% for investors.

The company's share price reached an all-time high of 35.5 cents in March this year before profit-takers swopped in. And even with today's higher price, its shares have continued to gradually slide lower over the longer-term.

King Island Scheelite presides a market capitalisation of roughly $77.7 million, with 408 million shares on its books.

The post Why the King Island Scheelite (ASX:KIS) share price rose 6% today appeared first on The Motley Fool Australia.

At the time of writing, the mining company's shares are swapping hands for 26.5 cents, up 17.78%.

What's driving the King Island Scheelite share price higher?

The King Island Scheelite share price pushes higher as investors appear to welcome the company's efforts to become debt-free.

In today's release, King Island Scheelite advised that it has completed a placement to raise $5.6 million. This will see 28 million new ordinary shares issued, which the company offered at 20 cents apiece.

The company said the placement falls under listing rule 7.1, which allows a further 15% of its shares to be issued without shareholder approval.

Swiss investment company DACHS Capital AG took up the bulk of the offer, with 20 million shares subscribed. The remaining balance of 8 million shares was allocated to Australian professional investors through MAC Equity Partners – the lead manager.

King Island Scheelite said that it would use the funds to repay its entire debt of $4.7 million, including any interest accrued. Previously the company had racked up an interest bill when acquiring some fixed property next to the Dolphin mine site.

The left-over monies from the placement will be put towards working capital to progress operations at the Dolphin mine.

Words from management

King Island Scheelite executive chair Johann Jacobs commented:

DACHS Capital AG became a shareholder in the company in early January 2021 and we are extremely pleased that they have shown the confidence in KIS to increase their investment and become a substantial shareholder.

We look forward to a strong long-term association with our new shareholders as we develop the Dolphin project and resume tungsten mining operations in Tasmania.

The King Island Scheelite share price has gained more than 500% over the past 12 months and 150% year-to-date.

The post Why the King Island Scheelite (ASX:KIS) share price is surging 18% today appeared first on The Motley Fool Australia.

King Island Scheelite's predominant focus is the redevelopment of the company's 100% owned Dolphin Tungsten mine located on King Island, Tasmania.

Tasmanian government puts up $10 million, King Island Scheelite share price leaps

In support of the Dolphin Tungsten Project, King Island Scheelite has secured a $10 million loan funding package over a 10-year period from the Tasmanian government.

Loan repayments will be on a monthly basis starting off as interest only. On the first day of the month following the second anniversary of the initial loan drawdown, fixed principal plus interest will be paid.

The loan terms also stipulate that all other capital raising necessary to deliver the project must be successful.

According the Australian Financial Review, the $10 million loan is part of $85 million in funding necessary to reopen the project. An additional $15 million will be sought from the federal government, and the remaining funds raised from the equity and debt markets.

During his National Press Club address earlier this week, Prime Minister Scott Morrison mentioned that the processing of critical minerals will fall under the federal government's $1.5 billion manufacturing strategy.

What is tungsten used for and why is it valuable?

Tungsten is the second-hardest mineral known to man following diamonds and has a variety of commercial, industrial and military applications. It's widely used in the construction, mining and transport industries, amongst others.

It is the heaviest engineering material and has the highest melting point of all metals. Approximately 83% of the world's tungsten supply currently comes from China.

Due to economic importance, supply risk (considering the dominance of China in the market) and its inability to be substituted, Australia ranks tungsten as a 'critical mineral'.

The British Geological Surveys, US Department of Defence, European Commission, Japan and Russia also rank tungsten the same.

Comments from the King Island Scheelite chair

Responding to China's current stronghold in the in industry, executive chair Johann Jacobs said:

Tungsten is a strategically significant metal and a key input to industries that are vital to national security. We note that several Western governments have recently identified a crisis in the supply chain for critical minerals, particularly tungsten, for which North America currently has no mines in production.

Regarding future financing activities, he further stated that:

We will continue to engage closely with agencies across all levels of Government, both State and Federal, as the Company gathers the financial and technical resources that will underpin the success of the Dolphin Project.

The King Island Scheelite share price has risen 55% in the past month.

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