The stock in question is Kaili Resources - a rare earth miner.

During the stock market session on Monday, August 18, Kaili Resources shares surged a whopping 8,733% or 88 times to the day's high of $3.18 as against its last closing price of $0.360.

To put it in perspective, an investment of around $11,000 would have turned into $1 million in a span of a day in Kaili Resources.

Monday's peak also marked the 52-week high for the stock. Meanwhile, its 52-week low stands at $0.0060.

What prompted the rally in Kaili Resources' stock?

In its response to the Australian stock exchange, Kaili's management team suggested the meteoric rise in its share price is likely due to an announcement made by the company on August 15.

The company, on August 15, announced receiving approval for drilling in South Australia for rare earth metals. The company said it has announced receiving a drilling program within 3 tenements at Limestone Coast targeting the Loxton/Parilla sands, exploring for rare earth elements.

"This announcement may have drawn investors' attention to KLR in view of high interest in critical minerals investment," the company said.

Trading halted in Kaili Resources

The wild rise in Australian mining company Kaili Resources resulted in a trading halt by the exchange at the request of the company itself.

"We request that the trading halt be with immediate effect to allow KLR time to respond to ASX queries on the trading of KLR securities on 18 August 2025 and the recent disclosures in respect of KLR on the ASX announcement platform. KLR requests the trading halt until the earlier of responding to ASX queries or commencement of trading on 20 August 2025," the company had said in a letter to the exchanges.

As a result, ASX imposed a trading halt and said the trading will resume on Wednesday, 20 August 2025.