Vulcan Energy shares can’t seem to catch a break.
The post Why is the Vulcan Energy share price tumbling 6% today? appeared first on The Motley Fool Australia. –
The Vulcan Energy Resources Ltd (ASX: VUL) share price is losing its charge today.
At the time of writing, the clean lithium developerâs shares are down 5.90% to $6.38.
It’s worth noting that its share price touched a 52-week low of $6.22 before moving in circles.
Letâs take a look at whatâs impacting the companyâs share price of late.
Lights out for Vulcan Energy shares?
Despite no news from the company today, the Vulcan Energy share price is being pounded by bearish sentiment from investors.
Goldman Sachs released its sector analysis on lithium in late May which caused panic across the battery metals market.
The broker believes that cobalt, lithium and nickel have peaked for now and will retrace heavily in price next year.
According to its report, Goldman Sachs is forecasting a drop in lithium prices to around US$16,000 per tonne in 2023. This represents a significant decline from the current going rate of roughly US$71,000 per tonne.
When the news became public, Vulcan Energy shares tanked 8% on the day along with other popular lithium shares.
Furthermore, the general market volatility on the ASX is also weighing down Vulcan Energy shares.
Following heavy losses on Wall Street over the past few days, theÂ S&P/ASX 300 Metals and Mining (Industry) has plummeted.
To put that in context, the index shed 2.43% yesterday and is again down 1.41% today.
More pain could be around the corner for Vulcan Energy shareholders, who have already been on a rollercoaster ride, if lithium prices do retrace.
Vulcan Energy is aiming to become the worldâs first lithium producer with net zero greenhouse gas emissions. Its Zero Carbon Lithium Project is seeking to create a lithium-hydroxide chemical product for the European electric vehicle battery market.
The Zero Carbon Lithium Project is located in Germany and is targeting production sometime in 2024.
Vulcan Energy share price snapshot
After storming to incredible highs in 2021, the Vulcan Energy share price has moved in the opposite direction.
Year-to-date, the companyâs shares are down almost 40%. These beatings have mostly come since the start of April.
Just last week, its shares fell 14% after recording 4 days of consecutive losses.
Based on todayâs price, Vulcan Energy commands a market capitalisation of approximately $892.55 million.
The post Why is the Vulcan Energy share price tumbling 6% today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Scott Phillips.