The Magnetite Mines Limited (ASX: MGT) share price is up 34% since the start of this week, leaving investors scratching their heads.
There's been no real news from the mineral explorer for nearly a month. Could Cyclone Sejora – which devastated parts of Western Australia earlier this week – be to blame?
The Magnetite Mines share price began the week trading for 4.7 cents. It's since risen to 6.3 cents.
Let's take a closer look at what's been going on with iron ore mining company lately.
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He said, she said
The question many interested investors are asking was also put to Magnetite Mines by the ASX yesterday, in the form of a price query.
The ASX asked why the Magnetite Mines share price was trading for 4.4 cents last Tuesday yet reached an intraday high of 7.5 cents yesterday. It also noted a significant increase in the number of shares trading hands in the same period.
Magnetite Mines responded by saying that, perhaps, it was caused by its acquisition of the Muster Dam Iron Ore Project, combined with near-record iron ore prices. The company announced its acquisition of the project in early March.
Iron ore prices are rising this week due to demand from China and supply concerns caused by Cyclone Sejora. Cyclone Sejora made landfall early this week, wreaking havoc on many of Australia's iron ore ports.
The company also pointed to an announcement of the appointment of its interim CEO and technical director in mid-March as a potential reason for its share price boom.
The Magnetite Mines share price has a recent history of rapid growth. In fact, its risen an enormous 530% this year so far, without announcing much in the way of news.
What's been driving it this week is yet another guessing game.
Magnetite Mines share price snapshot
The Magnetite Mines share price started 2021 trading for just 1.3 cents. Interestingly, August 2020 was the first time the company's share price closed above 1 cent since 2018.
Currently, it's up by a whopping 3,050% since this time last year.
The company has a market capitalisation of around $194 million, with approximately 2.8 billion shares outstanding.
