Why the Carnaby Resources (ASX:CNB) share price rocketed 11%

The Carnaby Resources Ltd (ASX: CNB) share price was through the roof after the company's latest announcement. Click here to find out more.

| More on:
industrial asx share price on watch represented by builder looking through magnifying glass

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 Carnaby Resources Ltd (ASX: CNB) share price was through the roof today. By close of trade, shares in the mineral exploration company were trading for 30 cents each – up 11.11%.

The significant price rise came after the company announced it detected "strong" induced polarisation (IP) signals at its gold mine in Queensland.

Let's take a closer look at the announcement.

What boosted the Carnaby share price?

In a statement to the ASX, Carnaby Resources said 4 "strong IP conductors…have been generated at the Nil Desperandum Prospect [in Mt Isa, Queensland] …" The company says the results mean it now has immediate walk-up targets for drilling.

IP is a method to locate deposits of ore, including gold and copper, in surfaces without the need to first dig into the ground.

After today's result, the company said it would bring forward drilling in the area to next week. It also said it conducted further IP tests at its Mount Birnie and Duchess Prospects. These will be announced "shortly", according to the statement.

Investors are have been buoyed by today's results, judging by the Carnaby share price action.

Management commentary

Carnaby managing director Rob Watkins said of today's news:

Nil Desperandum and our other Greater Duchess Copper Gold prospect areas are rapidly emerging as an exceptional camp of high-grade copper gold targets…

He added:

We are genuinely excited about the targets and as such we have bought forward the 4,000m RC drilling program which will now commence next week.

Copper and gold commodity prices

Historical finds at the prospect have mostly been copper and gold. Both gold and copper have seen their prices rise over the past month – copper much more so. The reddish-brown metal is up 14% over the month and 32.8% since the beginning of the year to US$4.67 per pound. Gold, meanwhile, is only 3.5% higher in a month and down 4.14% in 2021. It is trading for US$1,817.83 per troy ounce.

Surging demand for clean technologies has been fuelling the demand for copper. Some have even been speculating that the copper price may be in a bubble.

According to the website Trading Economics, lower US Treasury yields, and a weaker US dollar are both pumping the current price of gold. It also cited the metal's safe-haven appeal to investors, as some worry about rising coronavirus case numbers in Japan and India.

Carnaby Resources share price snapshot

Over the past 12 months, the Carnaby Resources share price has increased by around 440%. Only 2 days ago, the company had another double-digit growth day when it announced another gold discovery.

In the last half-year, however, the company's value has decreased by 19.2%.

Carnaby Resources has a market capitalisation of $46.5 million.

Should you invest $1,000 in Pro Medicus right now?

Before you buy Pro Medicus shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Pro Medicus wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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 contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner looking at a tablet.
Resources Shares

Up 73% since April, why Mineral Resources shares could keep charging higher

A leading expert says that Mineral Resources shares remain ‘heavily undervalued’. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

Miner looking at a tablet.
Resources Shares

What's the latest broker ratings on BHP shares?

There's an air of caution floating about BHP shares even with bullish ratings.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

BHP shares last traded at $50 in 2023. When will they get back there?

Let’s dig into the potential for BHP shares to rise.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 21% on 'exceptional' results

Investors are sending the ASX All Ords stock flying higher on Wednesday. But why?

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Resources Shares

Guess which prominent Super fund just offloaded its remaining Mineral Resources shares?

This super fund has had enough.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Broker names 10 ASX mining stocks set to outperform following Macquarie Conference

Twenty-two ASX mining companies presented at the annual Macquarie Conference last week.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

Invested $8,000 in Fortescue shares 5 years ago? Guess how much passive income you've banked!

Fortescue is popular among passive income investors for paying two fully franked dividends per year, even during COVID.

Read more »