Why is the Andromeda Metals (ASX:ADN) share price leaping another 18% today?

Find out what's behind the moves today.

| More on:
active person star jumping amid city landscape

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

Shares in industrial minerals company Andromeda Metals Ltd (ASX: ADN) are surging 18% higher today and now trade at 22.5 cents apiece.

Whilst there's nothing price-sensitive out of Andromeda's camp today, its share price has crept up gradually after bouncing off a 15 cent low in December.

Why's the Andromeda share price soaring today?

In the absence of any market-moving information or news, it's not abundantly clear on exactly what is behind the monstrous jump in the Andromeda share price today.

However, investors have been piling into the company these past few weeks, such that shares have exploded more than 32% in the last month.

That's a huge step ahead of the S&P/ASX 200 Index (ASX: XJO)'s return of less than 1% over the past month.

Underpinning the growth is a pair of market updates released in the back end of 2021. Firstly, the company announced its pending merger with Minotaur Exploration Ltd (ASX: MEP) last year. If the merger is given the green light, Andromeda would then be the 100% owner of the Great White kaolin project.

The proposal of 1.15 new Andromeda shares for each Minotaur share will close on 31 January after Minotaur directors unanimously recommended its shareholders to accept the offer.

Aside from this, South Australian Energy and Mining Minister Dan van Holst Pellekaan, granted mining leases for the Great White kaolin project last month as well.

The decision marks another step closer to becoming a "world-class" producer of kaolin minerals, according to managing director James Marsh at the time.

"Once in production a whole range of new and significant halloysite-kaolin opportunities will open up for us, and I would like to thank the whole Andromeda team for their dedication and professionalism", Marsh said.

Andromeda share price snapshot

Despite the recent strengths, the Andromeda share price has fallen more than 23% in the last 12 months.

Yet, it has climbed over 32% in the past month and is now up almost 22% for the year to date.

So far, this year to date, Andromeda is outpacing the broad index's loss of less than 1%.

The author has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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

The ASX managed to bank a small rise this Tuesday.

Read more »

Sport trainer talking to little girl who is climbing wooden ladder in gym.
Share Gainers

Why Vault Minerals, Droneshield, Westgold Resources shares are climbing higher today

These shares are gaining on Tuesday, but why?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Financial Shares

5 best ASX 200 financial shares of FY25 (CBA didn't make the cut!)

These stocks were well and truly 'in the black' for share price growth last financial year.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Amaero, Black Cat, Domino's, and Ramelius shares are racing higher today

These shares are having a good session on Tuesday. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough start to the trading week for investors this Monday.

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Share Gainers

ASX tech shares outperformed US tech stocks by 2:1 in FY25. Here's why

Forget the Magnificent 7! Aussie tech shares had twice as much price growth as US tech stocks in FY25.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Bellevue Gold, Cobram, Hub24, and Nanosonics shares are pushing higher

These shares are starting the week on a positive note. But why?

Read more »

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

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

Read more »