The S&P/ASX 200 Materials Index (ASX: XMJ) has gained 5.8% in August, but one ASX lithium share has soared far higher.
The Ragusa Minerals Ltd (ASX: RAS) share price has soared 293% from 7.5 cents at market open on August 1 to the current share price of 29.5 cents.
So why have investors been buying up Ragusa Minerals shares?
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Why has this ASX lithium share soared?
This ASX lithium share has soared on the back of news out of its Northern Territory Lithium Project. Lithium is an essential component of electric vehicle (EV) batteries.
Ragusa is exploring lithium in the Litchfield Pegmatite Belt in the Northern Territory. The company also has a 100% interest in the Burracoppin Halloysite Project in Western Australia. Further, Ragusa wholly owns the Lonely Mine Gold Project in Zimbabwe and the Monte Cristo Gold Project in Alaska.
Since market close on 10 August, the Ragusa share price has soared 180% alone. On 11 August, Ragusa revealed historical exploration has affirmed high grade lithium perspectivity at the NT project.
This includes 8.03% Li2O3 and 7.25% Li2O6.
Commenting on this news, chairperson Jerko Zuvela said:
We have a significant opportunity to utilise our exploration and development experience to rapidly progress our NT Lithium Project and realise the massive upside value potential in a Tier 1 jurisdiction close to major infrastructure at a time of record lithium prices
Meanwhile, the outlook for the lithium price could also be providing Ragusa with a boost. In a note yesterday, analysts at Macquarie boosted the price target on multiple ASX lithium shares and upgrade their outlook on lithium prices. Macquarie said:
We upgrade medium-term lithium carbonate and hydroxide price outlook and expect prices to stay higher for longer. We also lift our regional lithium price forecasts to match the pricing strength in China.
Finally, in news today, Ragusa has received a price query from the ASX. The company highlighted it is in compliance with listing rules while noting the 11 August news. Ragusa said:
Given the results announced on this date, with drilling preparation works progressing, there has been a significant level of interest of upcoming works and results from the
project.
Ragusa share price recap
The Ragusa Minerals share price has exploded 275% in a year, while it has risen 242% in the year to date.
In contrast, the ASX 200 Materials Index has climbed 0.34% in a year, while it has lost 1.43% year to date.
Ragusa has market capitalisation of about $34.4 million based on the current share price.
