11 hours ago
Aussie share no-one has heard of POPS: Stock surges 72 times over - $14k instantly turns into $1m
An obscure rare earth miner's share price has skyrocketed from just four cents to $2.82 in a matter of hours.
The 70-fold increase in the Kaili Resources share price occurred on Monday turning a modest $14,000 investment into a $1million windfall.
The surge happened within just five-and-a-half hours from the start of trade, with the share price peaking at 3.30pm Sydney time, or just 30 minutes before the close of trade.
But the Australian Securities and Investments Commission imposed a trading halt on Monday, that will continue until Wednesday, following a request from the company.
'Trading in securities in the entity will be temporarily paused pending a further announcement,' the ASX said.
By then, profit takers had already sold, causing the price to more than halve back to $1.08 by the late afternoon.
This was still the highest closing price since June 2002.
Those who held on without profit selling still made a significant profit, with an initial $1,000 investment still worth $27,000.
An obscure rare earth miner's share price has skyrocketed from just four cents to $2.82 in a matter of hours
The surge from Friday's close at 3.6c started after Kaili Resources announced that afternoon that South Australia 's Department of Energy and Mining had given it approval to drill at three tenements in Lameroo, Karte and Coodalya in the Murray Basin.
Kaili Resources, established in 1997, has languished under 80c for the last 20 years
Kaili chairman Donghai Zhang and director Chunlin Liu are connected with the Chinese Yitai Group, which controls Inner Mongolia Yitai Coal Co.
