Sunrise Energy Metals Shares Jump Nearly 8% as Scandium Developer Rebounds Ahead of Planned Nasdaq Listing

SYDNEY — Shares of Sunrise Energy Metals Ltd. rose nearly 8% on Wednesday, extending a volatile rebound as investors weighed the company's progress on its Syerston scandium project in New South Wales and its planned move to a U.S. listing.

Sunrise shares gained A$1.00, or 7.69%, to A$14.00 after trading between A$12.73 and A$14.165. About 476,000 shares changed hands, and the company was valued at about A$2.4 billion.

The stock is up about 206% over the past year, making it one of the best-performing critical minerals stocks on the Australian market. It remains well below its 52-week high of A$23.65.

The company did not release any market-sensitive announcement on Wednesday. On Tuesday, Sunrise said it had completed an investment in U.S.-based Agni Semiconductor Inc. It had earlier announced plans to invest A$5 million in the company.

Investment decision and U.S. financing

Sunrise approved a final investment decision on the Syerston Scandium Project on Nov. 2, moving the project into construction. The company says Syerston hosts one of the world's largest and highest-grade scandium deposits in a Five Eyes country.

Scandium is a rare metal used in lightweight aerospace alloys, solid oxide fuel cells and semiconductors. Global output is small, about 80 metric tons in 2025 according to the U.S. Geological Survey, and supply is dominated by China.

In August, the U.S. Department of War's Office of Strategic Capital announced a conditional commitment of up to US$400 million in long-term debt financing for the project, under a proposed 25-year facility. The commitment is non-binding and depends on due diligence, final documentation, equity contributions and binding sales agreements.

Sunrise Chairman Robert Friedland, the mining billionaire, has said the project "will be the world's first source of primary mine supply for scandium end-users."

David A. Lorch, director of the Office of Strategic Capital, said the "nearly $1 billion deal, bringing together public and private capital, would help address foreign dependencies in scandium supply."

As part of its talks with U.S. officials, Sunrise expanded the project to include U.S. scandium metal refining and more water and power infrastructure. It also presented a revised capital cost estimate of about A$450 million to A$475 million.

Redomicile adds uncertainty

The U.S. financing is tied to a plan to move Sunrise's parent company to the United States and list on Nasdaq. Under the proposed scheme, shareholders would by default receive CHESS Depositary Interests that keep trading on the ASX, with the option of taking Nasdaq-listed shares instead. Sunrise is targeting completion in December, subject to shareholder and court approvals.

The process has weighed on the stock. Sunrise shares were trading above A$21 when the redomicile was announced in early October, then fell sharply through October and early November. The shares dropped more than 8% on Nov. 6 before recovering this week, with an 8.7% gain on Monday and Wednesday's rise.

Sunrise had A$148.1 million in cash at Sept. 30, according to its September-quarter report.

The stock's sharp swings reflect investor interest in critical minerals projects outside China, as well as the risks of building a first-of-its-kind scandium mine. Investors will be watching for the scheme booklet on the redomicile, binding offtake agreements and final terms of the U.S. loan.