Insights

Why the Lion Energy (ASX:LIO) share price is crashing 23% lower today

The Lion Energy Ltd (ASX:LIO) share price is crashing lower on Friday following the release of further details relating to its green hydrogen strategy…
The post Why the Lion Energy (ASX:LIO) share price is crashing 23% lower today appeared first on The Motley Fool Australia. –

white arrow dropping down

It certainly has been an eventful week for the Lion Energy Ltd (ASX: LIO) share price. Prior to today, the green hydrogen company’s shares were up an incredible 44% since the start of the week.

However, it is giving back a good portion of these gains on Friday morning. In early trade the Lion Energy share price is down a sizeable 23% to 7.5 cents.

Why is the Lion Energy share price crashing lower?

This morning the company returned from a trading halt following the release of a response to a query from the ASX.

That query sought more information relating to the company’s recent green hydrogen strategy presentation.

While the company provided a thorough response, some investors may be disappointed with its plans. Others could be taking profit off the table today following the strong gains earlier in the week.

How did Lion Energy respond?

Lion Energy has released an additional presentation with further clarification on its plans and progress.

It commented: “To date, Lion has progressed its Hydrogen Strategy by assessing the hydrogen industry and growth opportunities in Australia and undertaking a preliminary and high-level review of the opportunities which may be available for Lion to participate in this industry. Lion has registered a business name (Lion H2 Energy) which will be used to further progress Lion’s Hydrogen Strategy. No material costs have been incurred in progressing the Hydrogen Strategy to date.”

The company is now at stage two of its strategy. It explained that this stage includes a number of activities that will be undertaken at a cost of approximately $0.5 million over a six-month period.

This includes the establishment of a team of hydrogen experts, which will form a Hydrogen Advisory Board. It will also see the appointment of experts to systematically analyse optimal electrolyser locations in Australia and the review of the best value and fit for purpose solar, wind and electrolyser technologies.

In addition, the company will review potential opportunities in which Lion may be able to combine its expertise and resources with a suitable market and partner to progress a green hydrogen development using the identified electrolyser locations and appropriate technologies.

Finally, it may also expand the scope of the Advisory board to review opportunities in H2 distribution and hydrogen fuel cells for heavy equipment and vehicles.

After which, there are stages three and four, which include feasibility studies and then the development of facilities.

Plenty of work ahead for the company!

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 February 15th 2021

More reading

Motley Fool contributor James Mickleboro 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 Why the Lion Energy (ASX:LIO) share price is crashing 23% lower today 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!