the Sunrise Energy Metals Ltd (ASX: SRL) The share price soared to the sky this morning, rising nearly 13% in early trading. At the time of writing, shares of the mining exploration company are down slightly and are trading at $ 2.35 – up 5.86% at Friday’s close. By comparison, the Index of all S & P / ASX ordinaries (ASX: XAO) is 0.07% higher.
Today’s price hike comes as the company announced a “bonanza grade platinum intersection” from one of its locations.
Let’s take a closer look at what’s happening today and what it means for the Sunrise share price.
Why the Sunrise share price is rising
In a statement to ASX, Sunrise Energy Metals (formerly Clean TeQ Holdings) says it has found “significant” results from its platinum development at the Sunrise project in New South Wales.
The best result, according to the company, was a 0.6m wide ore containing 129g per tonne of platinum, 1.23g per tonne of palladium, 1.79g per tonne of rhodium, 4.0g per tonne of iridium, 0.89 g per tonne of osmium, and 0.28 g per tonne of ruthenium.
Sunrise says its drilling results show the potential for even larger discoveries in the Phoenix Platinum area, which is part of the project.
Collectively, the metals found in this ore sample are referred to as platinum group elements (PGEs). Investors are pleased with the big discovery of the company, judging by the performance of the Sunrise share price this morning.
Sunrise Energy Metals Co-Chairman Robert Friedland said:
We have long suspected that Sunrise laterite may be the weathered surface expression of an Alaskan-style dunitic system that lies beneath it – by the end of the 19th century this region was the largest source of platinum in the world and remains the site of the only primary platinum mine in Australia.
While this new and exciting development is still in its early stages, this incredibly high platinum interception is very encouraging in terms of the potential for what may lie beneath this astonishing Sunrise ore body. We will follow this initial success with great enthusiasm.
PGE commodity trading
Prices for PGE metals have increased in the commodities market since the start of the year.
Platinum is 12.77% higher (US $ 1,202.43 per troy ounce), palladium is up 20.29% (US $ 2,945.90 per troy ounce) and rhodium is incredibly higher by 73.53% since the start of 2021 (US $ 29,500 per troy ounce).
According to the Trading Economics website, PGE metals are expected to continue their ascent for the foreseeable future as government and industry invest in greener technologies. PGE metals are used as catalysts to reduce emissions from fuel car engines.
Other metals experiencing similar increases due to the Green Revolution are lithium and copper.
Overview of the Sunrise share price
In the last 12 months, the Sunrise share price has increased by 14%. It is, however, 38% below its 52-week high of $ 3.85. This record was reached in September 2020.
Based on its current valuation, Sunrise Energy Metals has a market cap of $ 196 million.
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Motley Fool contributor Marc Sidarous 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 only contains general investment advice (under AFSL 400691). Authorized by Bruce Jackson.