Why is the Galileo Mining share price diving 21% this week?

Red arrow going down symbolising a falling share price.Red arrow going down symbolising a falling share price.

Shares of Galileo Mining Ltd (ASX: GAL) have slipped hard this week and now trade more than 21% in the red. At the time of writing, Galileo shares are fetching $1.43 apiece.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has slipped around 2% on the day.

What’s up with the Galileo share price?

After news surfaced that the company could be a takeover target earlier this week, there was short-term optimism in the Galileo share price, with the stock surging 9% on the day.

Zooming out, however, shares have clamped down from a high of $1.82 since 2 June, and are now continuing in a downtrend since that date.

The company also advised this week it had started drilling at its Callisto discovery, located at its Norseman project in Western Australia.

Nevertheless, investors weren’t biting from the update and sent the stock even lower on the day.

An equal weighting factor is the broad-sector weakness currently marring the metals & mining sector.

Over the past month of trade, there’s been a striking similarity in the trajectory of both the Metals & Mining index and the Galileo share price, as seen below. Both have slipped from highs in June.

TradingView Chart

With that in mind, it appears sector weakness may have spilled over to the Galileo Mining share price this week.

Despite the downward pressure, the Galileo Mining share price has returned more than 535% this year to date and has spiked 429% in the last 12 months.

The post Why is the Galileo Mining share price diving 21% this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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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