The Piedmont Lithium Inc (ASX: PLL) share price is in the red on Friday morning, currently down 3.67%. This comes despite no fresh news from the ASX lithium share.
At the time of writing, Piedmont shares are trading at 52.5 cents apiece, bringing losses to around 30% for the year to date. They are also down more than 40% over the past month.
In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is down 0.93% in early trade on Friday. The two have tracked each other closely in 2022, as seen below.
What’s up with the Piedmont Lithium share price?
Despite its performance this year, brokers remain constructive on the Piedmont Lithium share price. The company has buy ratings from 100% of analysts covering it, according to Bloomberg data.
The JP Morgan team likes Piedmont’s four key lithium projects that, once completed, should ensure the company is a “low-cost producer of both spodumene (preferred feedstock for lithium hydroxide) and lithium hydroxide (required for long-range EV batteries)”.
Meanwhile, the company also announced this week that its 25%-owned North American Lithium (NAL) program in Canada plans to commence lithium spodumene production by 2023.
The plant will require significant upgrades to infrastructure to bring it up to speed and ensure maximum capacity, efficiency, and safety.
Piedmont owns the site along with 75% owner Sayona Mining Ltd (ASX: SYA).
Despite the update, investors have punished the Piedmont Lithium share price, sending it to 52-week lows in today’s session.
Meanwhile, the price of lithium remains steady and is still up 434% in the past 12 months, or 1.5% in the past month.
Piedmont Lithium shares have collapsed around 50% during the past year of trade.
The post What’s clamping down on the Piedmont Lithium share price? appeared first on The Motley Fool Australia.
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More reading
- These 3 ASX All Ordinaries shares are hitting new 52-week lows today
- Down 18% in a month, is the Piedmont Lithium share price a buy?
- Which ASX lithium shares are producing and which are not?
- Why has the Piedmont Lithium share price cratered 13% in a week?
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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