Globe & Mail Small cap to watch: Why this rare earths producer’s stock is trading at record highs
Shares of rare earths metals producer Neo Performance Materials Inc. are trading near all-time highs after the company struck a unique production agreement with a uranium player.
Neo shares hit a record $19.39 in trading on the Toronto Stock Exchange on Tuesday, after the company announced after market close on Monday a partnership with uranium miner Energy Fuels Inc. to launch a rare earths production initiative across European and North American critical material supply chains.
Neo shares were trading around $18.40 midday on Wednesday. The stock is up by about 230 per cent from its 52-week low of $5.55 on March 31 last year and up 33 per cent so far this year.
Shares of Energy Fuels hit a multi-year high of $8.78 on the TSX earlier on Wednesday, up more than 30 per cent from Monday’s close. The stock has since pulled back a bit to $7.65 midday.