What is Happening to Highfield Resources Share Price?
Shares in Highfield Resources Limited [ASX:HFR] have enjoyed a significant tailwind lately. In late January they traded at 78 cents. Last week they traded over $1.75.
Why Did This Happen to Highfield Resources Shares?
Highfield is developing potash projects in northern Spain. Trevor Hoey described it like this in the Australian Financial Review on March 16:
‘Highfield is poised to become the first ASX-listed company to take a potash project from discovery to production…
‘Two announcements are due; the scoping study for the group’s Sierra del Perdon asset and the all-important definitive feasibility study for Highfield’s flagship Muga project.’
The first announcement mentioned in the AFR article happened on April 7. Investors were pricing in a positive announcement. The stock price peaked on that day.
What Now for Highfield Resources?
Since the announcement on April 7, the stock has sold off. It had enjoyed a significant run up to that announcement, so it’s no surprise there has been a pause as investors consolidate recent events.
An interesting stock to watch for further developments.
Editor, Markets and Money