Australia’s Rare Earth Materials Company, Kaili Resources has created panic in the stock market. The company’s shares have made a tremendous jump of 8700% in just 1 business day. On Monday, August 18, 2025, the stocks saw a rise of 8700% further, after which its price rose from 36 cents to $ 3.18. Meaning if someone had applied $ 11,000 in the company’s shares on Monday, then his investment would have become about one million dollars (about 1 million dollars) in just one day.
What is the reason for the boom?
According to a Mint news, Kaili Resources made a big announcement on 15 August. The company said that it has received approval for drilling at three places in the Limestone Coast area of South Australia. This drilling will be done to discover rare earth metals in LOXTON/Parilla Sands area. The news of this approval caught the attention of investors because the demand for critical minerals i.e. essential minerals is increasing rapidly.
ASX imposed ban on trading
After a tremendous rise in shares of Kaili Resources, the company itself demanded to stop trading from the Australian Stock Exchange (ASX). The company told ASX that they want to take time to answer questions related to this sudden increase and recent news. ASX also stopped the trading till 20 August, obeying the company. This step has been taken to prevent increased speculation and ups and downs due to the rise in the stock market.
Company is running in losses
It is surprising to see the weak earnings and losses of the company in the shares of Kaili Resources. Although the company’s discovery of rare Earth metals has increased expectations, but such a huge speed also brings risk with it. Therefore, investors are advised to take steps well by understanding the financial condition and future possibilities of the company instead of investing in a hurry.
Rare Earth Materials are very important for green technology
The demand for rare meaning materials is increasing every day, especially due to green technology and electric vehicles. For this reason, companies like Kaili Resources are moving forward in this field. This company is not only strengthening the supply of rare meaning inside the country, but is also making its grip all over the world. The advantage of this will be that the country will have to be less dependent on China in this matter, because China is the biggest player of this sector.
Disclaimer:This article is only for information and should not be considered as an investment advice in any way. TV9 India has to take advice from its financial advisors before taking any decision related to money to its readers and audience.