Province Resources (ASX:PRL) share price slides despite hitting next project milestone

The Province Resources (ASX: PRL) share price has been on a wild ride this year. Let's look at the latest news on its green hydrogen project.

| More on:

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 Province Resources Ltd (ASX: PRL) share price left the market scratching its head after surging 450% from 2.5 cents to 14.5 cents on 17 February.

This was followed by significant profit-taking as its shares tanked almost 50% in value the next day to 7.5 cents. 

More than one month on, shares in the gold and nickel exploration company have found their way back up to record territory. Even though it's down 9.6% at the time of writing, the Province share price is trading at 14.5 cents.

What did Province announce today?

In this morning's release, Province advised that it had started collecting wind and solar data at its HyEnergy Zero Carbon Hydrogen Project. 

The HyEnergy project is in Western Australia's Gascoyne Region and covers a flat-lying arid landscape. This region possesses significant solar and wind potential. The company previously noted that its annual mean wind speed of 25.5 km/h ranked it as the 4th windiest location in the state. The region also averages 211 sunny days per year, making it a very rich solar resource with low competing land use. 

The company said collecting wind and solar data involved the installation of a Fulcrum3D SODAR (sonic detection and ranging) weather monitoring station on site. This will assess the wind and solar resource potential for the area. 

Fulcrum3D's flagship SODAR system is one of only 5 remote sensing instruments globally. The data collected will enable the proposed wind turbines and solar array network to be optimised before the final project scope and scale decision point. 

Words from management

Commenting on the progress, Province managing director David Frances said:

It is great to be able to hit the ground running on the exciting HyEnergy green hydrogen project, I look forward to progressing the feasibility studies as quickly as possible.

One of the company's objectives over the next 12 to 18 months includes starting feasibility studies for renewable power generation and green hydrogen production. This will allow the company to build the foundations for a pilot trial of green hydrogen and green ammonia production. 

Despite the good news, the Province share price found itself 6.45% lower on Monday. Some of the weakness may be attributed to the sell-off in small-cap shares, with the ASX Small Ordinaries index down 0.85% this afternoon. 

Early days for Province Resources share price

Province is in its early days, having made the transformational acquisition just one month ago. 

The company believes that green hydrogen produced from renewable sources such as wind and solar energy looks set to play a significant role in navigating society towards a decarbonised future and meeting the global aim of net-zero emissions by 2050. 

The overall scope of the HyEnergy project is to generate 1 gigawatt of renewable energy for the large scale production of approximately 60,000 tonnes of green hydrogen or up to 3000,000 tonnes of green ammonia for domestic and export markets.

Motley Fool contributor Kerry Sun 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 Market News

Woman in celebratory fist move looking at phone
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 20% to almost 30%

Analysts are tipping these shares to deliver big returns over the next 12 months.

Read more »

A young woman carefully adds a rock to the top of a pile of balanced river rocks.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Energy and utilities stocks led the way last week with 4%-plus gains.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »