Strong performer Sirius Resources has become Australia's newest billion-dollar company.
Yesterday shares in the explorer again rose following more promising drilling results from its Fraser Range nickel-copper project, The Australian reported.
Shares in the company jumped 48c to a new all-time high of $4.67 in early afternoon trade, lifting the group's market capitalisation to $1.04 billion.
Last July the company was trading at just 5.7c per share and was down to its last $1 million.
The latest jump comes after the announcement that the most recent drill hole into the Conductor 6 prospect has returned a broad intersection of mineralisation, meaning the deposit could be larger than expected.
In December the company said it would raise $44 million in a placement priced at $2 a share, issuing 22 million new shares to institutional clients, which at the time represented 11.5 per cent of its issued capital.
At the time Sirius’ managing director Mark Bennett said the funds will add value to the company without high levels of financial risk and enable increased exploration around the company’s Nova nickel-copper deposit located near Balladonia in Western Australia.
"We are now fully funded for the entire resource definition and feasibility process through to a potential future project financing decision," he previously said.
Late last year Grant Thornton’s national head of corporate finance Paul Gooley spoke about opportunities for junior mining and exploration companies in the Australian market and used Sirius Resources as a prime example.
He said at the time that the Australian based nickel and copper miner was down to their last drilling exercises funding would allow when they managed to hit a large nickel seam. Subsequently their shares rose 4500 per cent in two months from .6 cents in July to peak at $3 a share, valuing the company at more than $600 million.
“You need to keep focusing on your core, you need to keep exploring, you need to be true to your strategy, because that’s why everyone’s in this game it’s about hitting that big seam and despite the issues if you remain core to your strategies there are opportunities," Gooley said.