The Liontown Resources Limited (ASX: LTR) share price certainly isnât roaring today.
In morning trade, the lithium developerâs shares are down 5% to $1.73.
Why is the Liontown share price falling?
The Liontown share price is tumbling on Friday despite there being no news out of the company.
However, it is worth noting that Liontown isnât the only lithium share that is trading lower today. In fact, the lithium industry is a sea of red today.
Fellow lithium shares Allkem Ltd (ASX: AKE), Core Lithium Ltd (ASX: CXO), and Pilbara Minerals Ltd (ASX: PLS) are all down by similar margins at the time of writing.
What is driving the selling?
The catalyst for the selling appears to have been a poor night of trade on Wall Street for higher risk shares.
In addition, lithium giant SQM saw its shares lose 8% of their value last night. This followed news that it will be spending US$1.5 billion to cut its extraction of brine in half by 2030.
According to Reuters, SQMâs Salar Futuro plan will modernise its process of evaporation and brine extraction, improve operating yields, and adopt the use of seawater via a desalination plant.
This follows a commitment made in 2020 in response to criticism over its brine usage to make a 50% reduction in the brine it pumps to mine lithium in the vast Atacama salt flat in northern Chilean.
Though, given that Liontownâs Kathleen Valley Lithium Project is in Western Australia and doesnât use brine, this development seems unlikely to have any impact on it.
The post Why is the Liontown share price tumbling 5% today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Liontown Resources Limited right now?
Before you consider Liontown Resources Limited, 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 Liontown Resources Limited wasn’t one of them.
The online investing service heâs run for over 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.
See The 5 Stocks
*Returns as of September 1 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Why is the Liontown Resources share price down 5% today?
- When will the Liontown share price start roaring?
- Liontown share price falls despite ‘milestone’
- Brokers name 3 ASX lithium shares to buy
- Why is the Global Lithium Resources share price rocketing 27% this week?
Motley Fool contributor James Mickleboro 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.
from The Motley Fool Australia https://ift.tt/qc7Emno
Leave a Reply