- In August of 2023 Red Metals added the Sybella rare earths discovery to its stable of copper, zinc, lead, silver, and cobalt development projects.
- The trading volume jumped following the announcement.
- The share price jumped again in February following a positive test results announcement from Sybella.
Red Metals has six projects in various stages of development, with the recent addition of the Sybella rare earths deposit igniting a firestorm of investor interest.
Source: ASX
Year over year the share price is up 223%, with a massive 162% rise in the last three months. The trading volume first spiked in August following the announcement of the Sybella rare earth discovery with speculation it could be a “world first” in its extraction process. The share price spiked again on the announcement the rare earth deposits at Sybella are “near surface and potentially recoverable with a cost effective weak-acid solution.”
The pre-spike trading volume suggests Red Metals had fallen under the radar of most Aussie investors. A comparison with an investor favorite with a recent rare earths discovery – Meteoric Resources (ASX: MEI) – suggests the same. Although MEI has a larger market cap, the share price of $0.18 is comparable. MEI’s ninety day average trading volume is 6,006,775 shares per day compared to 719,873 share per day for RDM shares.
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An analyst at Securities Vaults has a HOLD recommendation on Red Metal shares, calling the company’s outstanding test results from its Sybella discovery “most encouraging” advising investors to continue to “monitor the news flow.”
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