Why did the Core Lithium share price jet 20% higher in July?

a miner holds his thumb up as he holds a device in his other hand.a miner holds his thumb up as he holds a device in his other hand.

The Core Lithium Ltd (ASX: CXO) share price powered ahead despite a small hiccup earlier last month.

The ASX lithium share finished at $1.155 a share, up 20.94% for the month of July.

In contrast, the S&P/ASX 200 Materials (ASX: XMJ) index fell almost 1% over the same time frame.

Let’s take a look at what led the company’s shares to accelerate while the broader index remained stagnant.

What happened to Core Lithium last month?

Despite tumbling to a near year-to-date low of 82.5 cents on 13 July, the Core Lithium share price made a stunning turnaround.

Selling pressure increased within the first couple of weeks of July as investors were betting against the lithium industry.

This saw Core Lithium, along with its peers, sink deep in the red.

On the same day, the company announced it significantly increased the Mineral Resource Estimate and Ore Reserves Estimate for the Finniss Lithium Project.

However, this failed to appease the market with investors shrugging off the good news at the time.

But as they have before, Core Lithium shares began to turn the tide in the following days as bargain hunters appeared to take advantage of the recent share price weakness.

The response saw the company’s shares rocket more than 20% from 14 July until 21 July.

In addition, Core Lithium released its June quarterly activities and cashflow report which highlighted its progress at Finniss.

With the company targeting first production of spodumene concentrate by the end of 2022, this could bode well for its share price.

Of course, this is provided lithium prices remain stable from here on.

Core Lithium share price summary

Adding to its already impressive gains, the Core Lithium share price has almost doubled in value in 2022.

When factoring in the last 12 months, its shares are up an incredible 317%.

Core Lithium commands a market capitalisation of roughly $2.03 billion.

The post Why did the Core Lithium share price jet 20% higher in July? appeared first on The Motley Fool Australia.

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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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