Energy Transition Minerals Ltd (ASX: ETM) shares are rocketing on Wednesday morning.
In early trade, the ASX small cap stock is up 54% to a 52-week high of 8 cents.
This latest gain means that the rare earths explorer's shares are now up approximately 100% since the start of the year.
Image source: Getty Images
Why is this ASX small cap stock rocketing?
Investors have been buying the company's shares this year amid excitement over its flagship Kvanefjeld Rare Earths Project in Greenland.
The gains have been so strong this year that this morning the ASX small cap stock was hit with a speeding ticket from the Australian stock exchange operator. It asked:
Is ETM aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?
While the answer to this question was a "no", the company did add colour to why it thinks investors have been buying its shares in recent sessions.
What's going on?
As some readers may be aware, as well as wanting to make Canada the 51st state of the United States, Donald Trump has his eyes on Greenland.
He recently stated his ambition to take control of the Danish autonomous territory and yesterday suggested that he could use military force to do it. Trump stated: "We need Greenland for national security purposes."
It seems that some investors think that US control of Greenland could be good news for the company's rare earths ambitions.
In response to the speeding ticket, the ASX small cap stock stated:
The Company notes that there has been significant global media coverage this week stemming from recent statements by incoming US President Donald Trump that owning and controlling Greenland is an "absolute necessity" for the United States. Mr Trump made the comments in a social media post announcing the appointment of PayPal cofounder Ken Howery as his choice for US ambassador to Denmark. Greenland is an autonomous territory of Denmark.
The Company notes that Mr Trump's comments (which have since been repeated) and the associated media coverage, have been reported in online stock market forums and commentary on ETM during the week. This together with other factors including the upcoming elections in Greenland, scheduled for no later than 6 April this year, indicate more positive investor sentiment about the prospects for the Company's flagship Kvanefjeld Rare Earths Project in Greenland, one of the largest and most strategic undeveloped rare earths deposits globally.
