European Lithium (ASX:EUR) share price drops despite positive update

The European Lithium Ltd (ASX: EUR) share price is dropping today, despite releasing a positive update to the market.
The post European Lithium (ASX:EUR) share price drops despite positive update appeared first on The Motley Fool Australia. –

A man recoiling from his empty wallet in horror, indicating a major share price fall

The European Lithium Ltd (ASX: EUR) share price is dropping today, despite releasing a positive update to the market.

During early trade, the lithium miner’s shares were in positive territory, reaching an intraday high of 8.4 cents. However, the European Lithium share price has since fallen to 7.2 cents at the time of writing, down 6.9%.

What did European Lithium announce?

The European Lithium share price is seesawing today after providing a progress update of its flagship asset.

In its release, European Lithium advised it’s on track with the definitive feasibility study of its Wolfsberg Lithium Project.

Dorfner, selected to undertake metallurgical test-work at the mine, received samples from the company’s 1500 tonne bulk sample stockpile. Currently, the raw materials are being carefully analysed, with leading engineering group DRA Global overseeing the process.

European Lithium it would receive a full and final report oN the metallurgical results within the coming months. Together, along with other works completed by the company, the report will be used for a final definitive feasibility study.

European Lithium highlighted that completing the metallurgical test-work will allow it to optimise the design for its hydrometallurgical production facility. In turn, this will save significant costs and time in fine-tuning the plant to maximise efficiency for future production lines.

Quick take on the Wolfsberg Project

Located 270km south of Vienna in Austria, the Wolfsberg Project aims to become first local lithium supplier for European batteries. The company believes that its late-stage project is well placed to target the largest lithium import markets in the European Union.

Most notably, the European automobile industry is rapidly transitioning to electric vehicles, thus requiring lithium to power its batteries. With an existing mining permit, and strategically placed in the heart of Europe, the company is poised to take advantage of the growing market. It expects that the Wolfsberg Project mine will be in production in 2023.

Management commentary

European Lithium chair Tony Sage highlighted the company’s assets to move into production, saying:

European Lithium has the major advantage of an existing permitted working mine in central Europe, to provide Dorfner with the tonnage needed to build a pilot plant and produce samples for met testing.

Successful metallurgical testwork progresses our strategy toward the DFS that will see the company advance towards becoming a near term, high quality battery-grade lithium hydroxide (LiOH) producer.

About the European Lithium share price

The European Lithium share price has gone on a rollercoaster ride over the past 12 months. Its shares fell heavily in March after reaching highs of around 8.6 cents the month before. During May, the company’s share rocketed to 9 cents, and again nosedived to COVID-19 lows.

Since hitting a 52-week low of 3.5 cents in October, the European Lithium share price accelerated to 13 cents this month. Currently, its shares are swapping hands for 7.3 cents.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post European Lithium (ASX:EUR) share price drops despite positive update appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!