The Lake Resources N.L. (ASX: LKE) share price has reversed most of its gains in the past month, down 30%.
This comes despite the company not releasing any price-sensitive news since its quarterly activities and cash flow report in April.
However, at the time of writing, the clean lithium developer’s shares are clawing back some lost ground, currently up 4.23% to $1.48.
Let’s take a look at what could have been driving the recent fall in the company’s share price.
What’s happening with Lake Resources?
The Lake Resources share price quickly rose from 96 cents at the beginning of March to reach an all-time high of $2.65 in early April.
However, investors are now offloading Lake Resources shares after heavy falls across the broader market this month.
This follows a series of market shocks such as China’s COVID-19 lockdown — which dented demand for lithium — the Russian war in Ukraine, and inflationary movements.
Another possible factor is the price of lithium, with lithium carbonate now trading below the highs it achieved in late March.
Fellow ASX lithium shares Liontown Resources Limited (ASX: LTR) and Sayona Mining Ltd (ASX: SYA) are also well in the red over the past month, down 19% and 43% respectively.
For context, the S&P/ASX 200 Index (ASX: XJO) has tumbled 4.7% in the past 30 days.
Furthermore, the S&P/ASX 300 Metals and Mining Industry (ASX: XMM) is down 5% over the same timeframe. The index contains companies in the top 300 ASX companies that are involved with gold, steel, and precious metals.
Lake Resources share price summary
Despite the recent fall, Lake Resources has been one of the best places to invest in the past year.
The Lake Resources share price has travelled 467% higher since this time last year and is up 46% in 2022.
Based on valuation grounds, Lake Resources commands a market capitalisation of roughly $1.99 billion.
The post The Lake Resources share price has plummeted 30% in a month. What’s going on? appeared first on The Motley Fool Australia.
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More reading
- Lake Resources share price tumbles again: Broker now sees almost 100% upside
- Lake Resources share price drops 9%: Is this a buying opportunity?
- Low charge: Is the party over for ASX lithium stocks?
- Which ASX 200 mining shares were the worst-performing on Friday?
- Why is the Lake Resources sliding 7% into the red on Friday?
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.
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