Mucinno Holding Inc. (OTCMKTS:MCNO) jumped 60% after announcing contract negotiation with CEMEX for the provision of transport services and silica sand supply. The company agreed to continue supplying the various concrete facilities in the central region of Mexico annually with around 75,000 tons of sand.
The company’s total demand for freight and sand is up 34% in the circuit relative to a year ago, and the figure is expected to continue growing for the rest of 2021 because of increased construction in the country. In June, there was a 16% cement production increase, according to INEGI.
The sand the company will provide in the negotiated contract is recycled, implying that it will collect from foundry residuals. Usually, the foundry residuals are provided in molds that are processed and revaluated to high-quality raw materials. The processing and revaluing process helps minimize negative environmental and community impacts. The company had worked with CEMEX for over 15 years. Following this contract and growing demand in the region, investors should watch MCNO.
Market Reaction:
On Tuesday, MCNO stock soared 59% at $0.0645 with more than 14.21 million shares, compared to its average volume of 97K shares. The stock has moved within a range of $0.0345 – 0.1050 after opening the trade at $0.0345.
