The All Ordinaries Index (ASX: XAO) gained 1.81% today, but one ASX mining share lifted a great deal higher.
The Australian Strategic Materials Ltd (ASX: ASM) share price jumped 2.9% to close Thursday's trading session at $3.19. In earlier trade, it climbed a hefty 7.82% before pulling back.
So, what did this ASX All Ords share report to the market today?
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New agreement
Australian Strategic Materials provided an update on its Korean Metals plant. The company's subsidiary KSM Metals Co Ltd, has signed a binding agreement on the sale of neodymium praseodymium.
The deal sees metal produced at the plant sold to Korean company NS World Co Ltd, which plans to use the neodymium praseodymium to make bonded magnets.
Under the agreement, KSM Metals will sell and deliver up to 10 tonnes of the rare earths metal between September and December.
What did management say?
Commenting on the news, Australian Strategic Materials CEO Rowena Smith said:
Securing the first sale of neodymium praseodymium ingot from our Korean Metals Plant is an
important milestone for ASM. In just over a year, we have taken our Korean Metals Plant from start of construction to commercial production.This is a remarkable feat of dedication from our team.
Looking ahead, Smith said commissioning and ramp-up at the plant would continue in the second half of this year. She added:
We look forward to securing further sales contracts in the coming months and will update the
market as contracts are finalised.
Smith also presented at the New World Metals Investment series today. In her presentation, she highlighted how the demand for rare earth oxides would soar by 2032.
She highlighted the company's Dubbo Project in NSW was construction ready with a processing plant on site. The company is exploring zirconium, niobium and hafnium in this project.
Share price snapshot
Despite today's gains, the Australian Strategic Materials share price is down 74% over the past year and 70% year to date.
In the past month, the company's share price has fallen 22%.
For perspective, the ASX All Ords Index has fallen 9% in the past year.
Australian Strategic Materials has a market capitalisation of about $456 million based on the current share price.
