Sunrise Energy Metals Shares Sink 8% Days After Syerston Scandium Investment Decision as Slide Deepens

SYDNEY — Shares of Sunrise Energy Metals Ltd. fell more than 8% on Friday, extending a volatile slide for the scandium developer just days after it approved construction of its flagship Syerston project in New South Wales.

Sunrise shares fell A$1.04, or 8.24%, to close at A$11.58, after trading between A$11.15 and A$12.76. About 712,000 shares changed hands, leaving the company valued at about A$2 billion.

The decline came amid a broad market pullback. The ASX 200 closed 0.5% lower as an AI-driven selloff swept through Asian markets.

Construction approved

The drop follows a major milestone. Sunrise announced approval of the Syerston Scandium Project final investment decision on Nov. 2. The decision moves the company from development planning into construction.

The project has ambitious targets. The plant is designed to make 60 tonnes a year of high-purity scandium oxide over a 32-year mine life. First production is targeted for the second half of 2028, following a 24-month construction and commissioning period.

The Syerston scandium resource comprises 60.3 million tonnes grading 390 parts per million scandium, containing about 23,554 tonnes of scandium.

Nasdaq move

Sunrise is also preparing to move its corporate home. The FID gives effect to a proposed redomiciliation of the group's parent company from Australia to the United States and the listing of holding company shares on Nasdaq.

That plan has weighed on the stock. Sunrise shares were trading at A$21.58 when the company announced its U.S. redomicile plan in October. The uncertainty surrounding the process, including the number of approvals required, has weighed on the shares.

Repeated sharp declines

The slide has been steep. The stock closed down 11.6% at A$11.80 on Oct. 30, down 13.7% at A$12.68 on Oct. 23 and down 10.4% at A$13.95 on Oct. 15. It closed at A$11.49 on Nov. 3, a daily drop of 3.77%.

Strategic metal

Investors have been drawn to the company's role in critical minerals supply. Sunrise has positioned itself as a potential source of primary scandium supply outside China, a metal used in aluminum-scandium alloys, solid oxide fuel cells and next-generation semiconductor materials.

It has attracted defense interest. Under an agreement, Lockheed Martin secured the right to purchase up to 15 tonnes of scandium oxide over five years from Syerston, roughly 25% of forecast Phase 1 production.

Volatility warning

Trading in the stock can magnify moves. Average daily volume has run in the range of 600,000 to 800,000 shares, a level that can amplify price swings when large blocks change hands.

Despite the recent losses, the stock is up about 163% over the past year.