Sunrise Energy Metals Shares Rebound More Than 12% a Day After Steep Sell-Off Tied to US Listing Plan

SYDNEY — Shares of Sunrise Energy Metals rebounded more than 12% on Friday, recovering a large part of the previous session's steep losses as investors returned to one of the Australian market's most volatile stocks.

Sunrise shares were up 1.73 Australian dollars, or 12.4%, at 15.68 dollars in afternoon trading, after reaching a high of 16.08 dollars. The stock had traded as low as 14.76 dollars earlier in the session. The company's market value rose to about 2.7 billion dollars.

The rebound followed a 10.4% drop on Thursday, when the shares closed at 13.95 dollars and ranked among the worst performers on the S&P/ASX 200 index.

Broad market recovery

The gain came as the Australian market rallied, with the ASX 200 rising about 1% after a strong session on Wall Street overnight. Materials and technology stocks, which were hit hard on Thursday, led the recovery.

Sunrise did not release any market-sensitive news on Friday.

A volatile stretch

Sunrise has been one of the hottest stocks on the Australian market this year. Its shares remain up about 177% over the past year and the company was added to the ASX 200 index about a month ago.

But the stock has swung sharply in recent weeks. It has fallen significantly since the company announced plans to redomicile to the United States and pursue a listing on the Nasdaq, when the shares traded around 21.58 dollars. Investors have been weighing the proposed move, along with conditional debt funding and project financing uncertainty for the company's flagship project.

About the company

Sunrise Energy Metals uses its proprietary Clean-iX continuous ion exchange technology for metals recovery and industrial water treatment. It is developing the Syerston project in New South Wales, which hosts deposits of scandium and other critical minerals used in advanced technologies.

Interest in critical minerals has surged as the United States and its allies seek alternatives to Chinese supply chains, helping drive strong investor demand for companies such as Sunrise.

The company has also issued new shares in recent weeks following the exercise of options.

Investors will be watching for further details on the U.S. redomicile plan and project financing, as well as any updates at the company's upcoming annual general meeting.

Given the stock's recent volatility, analysts say further large swings are possible as the market digests the company's corporate changes.