Province Resources Share Price Rockets on Switch to Green (ASX:PRL)

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The share price of gold and nickel explorer Province Resources Ltd [ASX:PRL] has soared over 200% today, on the announcement it will acquire renewable energy related projects.

At time of writing the PRL share price is up 246.15%, or 6.4 cents, to trade at an all-time high of 9 cents per share.

 ASX PRL Share Price Chart - Province Resources SharesSource: Trading View

Interest in PRL shares has waned since mid-2020, despite the rise in the gold price and base metal prices.

But this isn’t the first move from an explorer this year.

Oil and gas explorer Real Energy Corporation Ltd [ASX:RLE] made the green transition in January, sending its share price skywards.

Province Resources to decarbonise

PRL today announced it has entered into a conditional agreement to acquire two ‘green’ projects in the northwest of WA.

As part of the agreement, PRL will acquire all the shares in Ozexco Pty Ltd, a company that holds seven exploration licence applications in the Gascoyne Region.

PRL say the area is considered to be prospective for salt, potash, and mineral sands.

And is potentially suitable for developing a renewable green hydrogen project.

Three ways to invest in the renewable energy boom.

Explaining the company’s shift to a greener focus, PRL Chairman David France stated:

This is the other side of the decarbonisation coin — while some environmentally conscious Companies are addressing the electrification of transport and storage of renewable energy, Province is aiming to address the decarbonisation of heavy transport and industry through the production of zero carbon hydrogen products.

Why these projects?

The hydrogen project might seem like a no-brainer if you’re looking to make the switch to producing green energy sources.

But how does salt and potash fit in?

Simply, PRL sees a gap in the market for these minerals.

According to PRL there is no current potash production in Australia and there has been no new large Australian salt project in 20 years.

With the current Asian market demanding more than 160 million tonnes of salt per year (a value of US$6.5 billion) and an expected deficit of more the 50 million tonnes over the next decade, PRL are looking to get into what could be a very lucrative market.

While potash has a current demand of seven million tonnes per annum (an annual value of ~US$3.5 billion).

The reason why PRL classifies these as ‘green’ projects is that they use the sun and wind to produce salt crystals, rather than powered machinery to evaporate the water.

As for their hydrogen project, PRL aims to take advantage of existing and planned renewable energy infrastructure in the area to produce hydrogen gas from sea water.

Together, they are unique and ambitious projects.

But they have already received considerable support from government bodies, having pledged $380 million.

And with trillions of dollars streaming into renewable energies from both private and public sectors, there is a sense we are going to have an imminent boom on our hands. Our energy expert, Selva Freigedo, reveals three ways you can invest to capitalise on the $95 trillion switchover from fossil fuels to renewables. Click here to learn more.


Lachlann Tierney,
For Money Morning

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

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