This ASX battery metals share has been taking investors on a wild ride of supercharged gains and falls. Here's why

What's been going on with this ASX small-cap lately?

| More on:
People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22

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

Key points

  • The Belararox share price is in the red again today after suffering major turbulence on the ASX last week
  • The recently-listed explorer's stock surged nearly 40% over Wednesday and Thursday, before plunging 14% on Friday
  • Its dramatic moves followed news the company has identified new targets at the Belara Project ahead of its maiden drill campaign

2022 has been a milestone year for the share price of battery metals focused ASX newbie Belararox Ltd (ASX: BRX).

The minerals explorer only recently listed on the index, floating on 28 January after offering its shares for 20 cents apiece under its initial public offering (IPO).

That means initial investors have likely had their socks blown off between then and now.

At the time of writing, the Belararox share price is $1.20 – 500% more than the company's IPO offer price.

That's despite the stock suffering a 14.48% tumble in Friday's session and slipping another 2.82% today.

So, what's the latest news from the battery metals explorer? Let's take a look.

What's been going on with this ASX battery metals share?

The Belararox share price has had a rollercoaster performance over the last few days.

The stock surged through the middle of last week, amping up its performance on Wednesday and Thursday, gaining approximately 18% on both days.

Then, on Friday, it suffered a downturn, tumbling around 14.5%.

So, what's been driving the zinc, copper, gold, silver, nickel, and lead explorer's stock over the last few sessions? It appears to be news of Belararox's Belara Project.

The company announced it had mapped potentially significant new targets at the project on Wednesday.

The additional targets seemingly support the company's expectation that the project is home to greater resources than previously noted.

The project was previously found to house copper, lead, zinc, silver, and gold.

A gradient array IP survey was responsible for finding the new targets.

They include the potential for extensions to the massive sulphide mineralisation at the project's Belara and Native Bee mines. The survey also identified a new kilometre-long anomaly to the south of Native Bee.

The ASX-listed battery metals explorer's managing director Arvind Misra said the newly identified strike extensions and targets will be tested by drilling. Misra continued:

The intention of our maiden drill campaign is to upgrade the existing resource at Belara. We feel there is immense inherent value within Belara that is not currently encapsulated by the historical resource, and we look forward to systemically exploring to reveal that potential. It appears our drill rigs will remain busy beyond the current program.

Belararox share price snapshot

The Belararox share price is back in the red today despite the broader market's gains.

Right now, the ASX battery metals explorer's stock is trading at $1.20, 2.8% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has gained 0.21% and the All Ordinaries Index (ASX: XAO) is up 0.17%.

Motley Fool contributor Brooke Cooper has no position 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 Resources Shares

A smiling woman holds up an apple with a laptop open on her desk.
Resources Shares

Rare earths shares charge as Apple weighs in

Tech giant commits to $500 million deal with MP Materials.

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Why Infratil, Iluka Resources, Lynas Rare Earths shares are jumping higher today

These three ASX 200 shares are gaining ground today.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Resources Shares

Guess which ASX mining share is jumping 10% on big news

This miner is having a good session on Wednesday. What's going on?

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Resources Shares

Should I switch my ASX 200 banking stocks for ASX 200 miners before earnings season?

The ASX 200 Index is dominated by Australia's bank and materials/mining sectors, which together account for around half of the…

Read more »

Miner looking at a tablet.
Resources Shares

Does Wilson Asset Management prefer Rio Tinto or BHP shares?

Which miner is in favour?

Read more »

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today
Resources Shares

Macquarie tips this ASX 200 resources stock to soar nearly 40%

Big returns could be on offer here according to the broker.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Resources Shares

Bell Potter says this ASX 200 mining stock can rise ~30%

Let's see why this miner could be destined to deliver big returns over the next 12 months.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Up 23% today, why Macquarie forecasts this ASX 200 mining stock could rocket another 33%

Macquarie forecasts more outsized gains to come for this surging ASX 200 mining stock.

Read more »