The recent government announcement regarding New Brunswick’s Sisson Mine has significantly impacted the trading of Northcliff Resources Ltd. shares. Speculation surrounding the project has driven stock prices to new heights and led to a flurry of trading activity in the past week.
Market Reaction to Government Announcement
Andrew Ing, president of Northcliff Resources, expressed enthusiasm about the mine’s referral to the federal government’s Major Projects Office for evaluation. This development, however, does not equate to an immediate construction decision.
Earlier reports suggested that Sisson Mine, located near Stanley, north of Fredericton, would be fast-tracked as a national project. This news prompted a buying frenzy, particularly on Wednesday, as investors reacted to the proposed announcement.
Trading Statistics
- Northcliff Resources shares surged by 190%, rising from a winter low of two cents to 66 cents.
- Trading volumes were exceptionally high, with 9.3 million shares exchanged on Wednesday and Thursday—over 500 times the usual volume for the same timeframe.
Despite the initial excitement, the stock faced a downturn late Thursday, resulting in a loss of over half of its gains by Friday. The stock stabilized in the 40-cent range after the sell-off.
Tungsten Market Dynamics
The tungsten market, heavily influenced by Chinese supply, has seen prices soar. Financial analyst Peter Thilo Hasler noted the potential for new North American mines to reduce dependency on China. Recently, tungsten prices reached $70 USD per kilogram, significantly higher than the original feasibility study’s assumption of $35 USD.
Future of the Sisson Mine
The Sisson Mine project is currently under evaluation for fast-tracking, although this designation has not yet been granted. The Todd Group, a prominent family business from New Zealand and the largest shareholder of Northcliff Resources, will ultimately decide the project’s future.
Industry experts like Hasler believe that the international market’s volatility highlights the need for new suppliers to fill the growing demand. The Sisson Mine could play an essential role in this emerging landscape, provided it secures the necessary approvals and updates its outdated feasibility study.
