Why has the Vulcan Energy (ASX: VUL) share price plunged 27% in a month?

Man in a business suit hangs in mid air facing the floor as he plunges to the ground.

It’s been a rough 30 days for the Vulcan Energy Resources Ltd (ASX: VUL) share price.

Right now, the Vulcan share price is $11.61, having fallen 0.6% yesterday. That’s 26.98% lower than it was this time last month.

Let’s take a look at what the market’s heard from Vulcan over the month that’s been.

Why is the Vulcan share price struggling?

The Vulcan Energy share price has been struggling despite the company releasing a plethora of news over the last 30 days.

It’s been nearly a month since Vulcan froze the trading of its shares on the ASX while it prepared to release news of a capital raise.

Vulcan was raising $200 million through an institutional placement. The funds were earmarked to go towards the company’s growth and its Zero Carbon Lithium Project.

Under the placement, shares in Vulcan were offered for $13.50 apiece, a 15.1% discount on their previous close.

It also announced it was planning to undergo a share purchase plan to raise another $20 million. The company later outlined the details of its share purchase plan, which also sports a $13.50-per-share price tag and will close tomorrow.

When Vulcan returned to trade on 16 September, its share price fell 8%.

Vulcan then released 2 seemingly positive announcements to the market towards the end of September.

First, it announced it had successfully created battery-quality lithium hydroxide monohydrate from its pilot plant. The pilot plant is in the same area and uses the same set-up as the company’s planned Zero Carbon Lithium Project.

Days later, Vulcan announced it had locked in the site on which it will build its Zero Carbon Lithium Project’s central lithium plant. The central lithium plant will process lithium chloride into lithium hydroxide monohydrate.

Unfortunately, the good news failed to meaningfully boost the Vulcan share price. Additionally, the company’s stock has fallen another 10% since the start of October.

However, Vulcan’s shares are still trading for 319% more than they were at the start of 2021. They’ve also gained 828% since this time last year.

The post Why has the Vulcan Energy (ASX: VUL) share price plunged 27% in a month? appeared first on The Motley Fool Australia.

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

Before you consider Vulcan 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 Vulcan 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

Motley Fool contributor Brooke Cooper 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.

from The Motley Fool Australia https://ift.tt/3uZwnDa

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s