Insights

Here’s why the Lithium Energy (ASX:LEL) share price is tumbling 6% today

Covid-19 travel restrictions have slowed down approval on this project.
The post Here’s why the Lithium Energy (ASX:LEL) share price is tumbling 6% today appeared first on The Motley Fool Australia. –

The Lithium Energy Ltd (ASX: LEL) share price is plunging today after a company update on its operations in Argentina.

Shares in the exploration company are trading hands at 70 cents on Monday afternoon, down 6%.

Let’s take a look at what may be impacting the Lithium Energy share price today.

What did the company announce?

In today’s release, Lithium Energy advised that COVID-19 travel restrictions were delaying public consultation at its Solaroz Lithium Project in Argentina.

The company advised the market back in September that approval for the project would be imminent.

Despite obtaining regulatory approval on the technical aspects of the exploration, the company wants to ensure the public consultation is complete before drilling for lithium.

The mining director has initiated follow-up public meetings with the two relevant community groups. This is now possible after COVID-19 restrictions were recently relaxed in the Argentinian province of Jujuy.

In consultation meetings in late July, the company said there were no significant community or landowner objections to the exploration.

Lithium Energy mines for battery minerals at both the Argentina mine and the Burke Graphite Project in Queensland.

Management comment

In a statement authorised by the executive chairman and director, the company said:

Whilst this has caused a delay to the planned exploration activities, Lithium Energy is fully supportive of the request made by the mining director.

Lithium Energy anticipates that such engagement will foster more positive long term community engagement and collaboration moving forward.

Lithium Energy said it would hold these community meetings in the new year and was not expecting any objection to the exploration.

The company is currently engaging with local geophysics and drilling contractors amid the pending approval and hopes to start exploring by early February 2022.

Share price snapshot

The Lithium Energy share price has surged a mammoth 250% in the past 12 months.

Despite this, the company’s shares have dropped by 21% in the past month and 4% in the past week.

The lithium miner has a market capitalisation of nearly $32 million based on the current share price.

The post Here’s why the Lithium Energy (ASX:LEL) share price is tumbling 6% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lithium Energy right now?

Before you consider Lithium Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lithium Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Cimic (ASX:CIM) share price dumps 15% before being halted. Here’s why

Why Australian Clinical Labs, Humm, Neometals, and Viva Energy are rising

Here’s why the Poseidon Nickel (ASX:POS) share price is climbing 8% today

Why Audio Pixels, CIMIC, Magellan, and St Barbara shares are tumbling

2 ASX dividend shares that could provide steady income in retirement

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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!