Why the AVZ Minerals (ASX:AVZ) share price rocketed 27% higher

Here's why the AVZ Minerals Ltd (ASX:AVZ) share price has rocketed 27% higher on Thursday…

| More on:
Rocket launching into space

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

The AVZ Minerals Ltd (ASX: AVZ) share price has been a very strong performer on Thursday.

At one stage today the lithium-focused mineral exploration company's shares were up as much as 27% to a 52-week high of 12.5 cents.

The AVZ Minerals share price has given back some of these gains but is still up 17% to 11.5 cents at the time of writing.

Why is the AVZ Minerals share price rocketing higher?

Investors have been buying the company's shares today after the release of a very positive announcement.

According to the release, the company has secured a strategic, long-term offtake partner with GFL International Co. It is the subsidiary of China's largest lithium compounds producer, Ganfeng Lithium.

The release explains that the two parties have signed an offtake agreement for spodumene concentrate (SC6) that will see Ganfeng Lithium purchase 160,000 metric tonnes per annum from its Manono Lithium and Tin Project.

The initial term is for five years but has an option to be extended for a further five years.

AVZ's Managing Director, Nigel Ferguson, commented:

"We are very pleased to finalise these discussions with GFL and to sign our first lithium offtake agreement. The fact we have signed our first offtake agreement with China's largest lithium compound producer just reinforces our belief that the Manono Project is world-class."

"GFL has signed on to take 30% of the Manono Project's initialsaleable SC6 yearly tonnage, which is a massive endorsement for our project. Over the coming months, I look forward to finalising other offtake agreements which are currently under negotiation, not only for our lithium products but also for our tin and tantalum materials."

"This SC6 offtake agreement with GFL will also greatly assist the Company in meeting any conditions precedent that are required for our prospective financiers. I look forward to updating our shareholders and the market with respect to the Company's financing options for the Manono Project early in the New Year."

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

More on Share Gainers

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

The markets lost their steam this Thursday.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today

These shares are having a strong session despite the market weakness.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »