Aussie share surges 72 times in value - turning $14K into $1mil
Share this @internewscast.com

An obscure rare earth miner’s share price has skyrocketed from just four cents to $2.82 in a matter of hours.

The 70-fold increase in the Kaili Resources share price occurred on Monday turning a modest $14,000 investment into a $1million windfall.

The increase occurred in a span of only five-and-a-half hours after the market opened, with the stock price reaching its highest point at 3:30pm Sydney time, merely 30 minutes before trading ended.

But the Australian Securities and Investments Commission imposed a trading halt on Monday, that will continue until Wednesday, following a request from the company. 

‘Trading in securities in the entity will be temporarily paused pending a further announcement,’ the ASX said. 

By then, profit takers had already sold, causing the price to more than halve back to $1.08 by the late afternoon.

This was still the highest closing price since June 2002. 

Those who held on without profit selling still made a significant profit, with an initial $1,000 investment still worth $27,000. 

An obscure rare earth miner’s share price has skyrocketed from just four cents to $2.82 in a matter of hours

The surge from Friday’s close at 3.6c started after Kaili Resources announced that afternoon that South Australia‘s Department of Energy and Mining had given it approval to drill at three tenements in Lameroo, Karte and Coodalya in the Murray Basin.

Moomoo market strategist Michael McCarthy said this surge was unhealthy and based on nothing more than crowd speculation, with the company not actually announcing any new production of rare earth minerals – used to make mobile phones.

‘It’s a disturbing development, I’ve got to say,’ he told Daily Mail Australia. 

‘Some people made a lot of money today, some people had the living daylights beaten out of them and there’s no economic rationale for what’s going on – they’re nowhere near production yet. 

‘Nonetheless, it appears to have captured the imagination of the market.

‘This is a product of crowd behaviour. This doesn’t make any sense.

‘The big problem with rare earths is not the drilling for them or the finding of them, or the mining of them, it’s the processing.

‘The fact they’ve been give a licence to drill is frankly neither here nor there.’ 

Kaili Resources, established in 1997, has languished under 80c for the last two decades, with Moomoo market strategist Michael McCarthy likening the surge in its share price to what happened in 1999 during the internet boom

Kaili Resources, established in 1997, has languished under 80c for the last two decades, with Moomoo market strategist Michael McCarthy likening the surge in its share price to what happened in 1999 during the internet boom

Kaili Resources, established in 1997, has languished under 80c for the last two decades, with Mr McCarthy likening the surge in its share price to what happened in 1999 during the internet boom.

‘Those sorts of moves, to be frank, are ridiculous,’ he said.

‘It does suggest the crowd has got a hold of the share price and given it’s a very low market cap, not a great deal of money to move this stock around, the fact that it captured imaginations and had become a meme is probably the key driver here.

‘As a long-term market participant, I hate to see this sort of stuff.

‘Frankly, I’ll be investigating in the morning what it takes to short this stock.’ 

Kaili chairman Donghai Zhang and director Chunlin Liu are connected with the Chinese Yitai Group, which controls Inner Mongolia Yitai Coal Co.

Share this @internewscast.com
You May Also Like

Bronx NYCHA Murder Suspect Faces Murder Charges: No Bail Granted in High-Profile Case

In a Bronx courtroom on Friday, a 67-year-old man accused in a…

Connecticut Road Rage Incident: Hartford Shooting Leads to Arrest of Local Man

A Connecticut man found himself in police custody following an alleged road-rage…

Deadly Storm Melissa Puts US East Coast on High Alert: Cities Brace for Impact

Meteorologists are advising residents along the US East Coast to brace for…

Chilling Texts Unveiled: Miss USA Hopeful’s Cryptic Message to Alleged Kidnapper

Disturbing new details have emerged in the murder investigation of Kada Scott,…

Secret Service Agent Revealed as Successful Plus-Size Model, Balancing Dual Roles

A former Secret Service agent, who once provided protection for Kamala Harris’s…

Fans React to ‘Malcolm in the Middle’ Star’s Surprising Reunion Photo

Devotees of “Malcolm in the Middle” were sent into a frenzy of…

Rebecca Grossman’s Connection to LA Dodger Prompted to Disclose Financial Records

Friday proved challenging for Rebecca Grossman, a convicted child killer, and her…

Rekindling Romance: Megan Fox and Machine Gun Kelly’s Dramatic Reunion After Split

After weathering a turbulent breakup, Megan Fox and Machine Gun Kelly appear…

Urgent Manhunt Launched for Mistakenly Released Hotel Migrant Sex Offender

An intensive police search is currently in progress following the inadvertent release…

Trump Escalates Tensions: Deploys Aircraft Carrier to Caribbean Amid Rising Geopolitical Strain

In a significant escalation against narco-terrorism from Venezuela, Donald Trump has dispatched…

Bridget Fonda, 61, Unveils Remarkable Transformation with Recent Weight Loss

Bridget Fonda, renowned for her alluring presence as the quintessential girl-next-door in…

King Charles Hosts Ukrainian President Zelensky at Windsor Castle for Diplomatic Talks

The King has reaffirmed his commitment to supporting Ukraine by welcoming President…