Core Lithium shares haven’t had a great month…
The post Why is the Core Lithium (ASX:CXO) share price having such a lousy month? appeared first on The Motley Fool Australia. –
As most ASX investors would be aware, the All Ordinaries Index (ASX: XAO) hasn’t had the best of months. Over the past four weeks or so, the All Ords has gone backwards by around 1.65%. But that’s nothing compared to the Core Lithium Ltd (ASX: CXO) share price.
Core Lithium shares have had a pretty depressing month, falling 5.36% since 16 November. That’s a drop from 56 cents a share to the 53 cent price tag we see today (at the time of writing).
So what’s been happening with Core Lithium that has made the past few weeks such a slog? Well, it’s not entirely clear. We have had some news from the company over the past month that might have contributed though. Core Lithium held its annual general meeting back on 25 November. However, that seemed to have little impact on investors, seeing as the AGM wasn’t marked as price-sensitive, meaning there were no meaningful company updates presented for shareholders there.
Then, just earlier this week, we got another update from Core Lithium. On Monday, the company informed investors that it had intersected “high grade spodumene mineralisation” during exploration drilling at its Finniss lithium project in the Northern Territory. The company stated that “these results are very encouraging” and “lay the foundation for production expansion within the broader Finniss Lithium Project”. More updates on this project are expected soon.
Why has the Core Lithium share price had a month to forget?
So investors seemed to have received these results with some warmth. That’s going off the fact that Core Lithium shares are up close to 5% since this announcement was made public.
However, even that move hasn’t been enough to pull Core Lithium away from its losses over the past month.
So perhaps investors have just decided to give Core Lithium shares a bit of a cool off. After all, this is a company that remains up an incredible 209% year to date, and an even more mind-boggling 483% over the past 12 months. It’s arguably quite normal for a share with those kinds of gains under the belt to have the odd pullback as investors take profits off the table.
Core Lithium shares are up 1.92% at the time of writing at 53 cents a share. At this share pricing, Core Lithium has a market capitalisation of roughly $884.72 million.
The post Why is the Core Lithium (ASX:CXO) share price having such a lousy month? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.