The Lake Resources NL (ASX: LKE) share price had a tough run in the month of November.

Lake Resources shares fell 5.66% from $1.06 at market close on 31 October to $1.00 at close on 30 November.

Let’s take a look at how the Lake Resources share price fared during the month.

What happened with Lake Resources?

Lake Resources was not the only ASX lithium share to fall during November. Allkem Ltd (ASX: AKE) shares shed more than 5%, while Core Lithium Ltd (ASX: CXO) shares descended 2%.

Lake shares climbed 11% between market close on 31 October and 14 November before retreating in the second half of the month.

News from the Kachi lithium processing plant on 2 November appeared to provide the Lake Resources share price with the boost. The company’s share price leapt more than 5% on this day. Lake advised initial test work had delivered “at spec” product from the plant.

Commenting on this news, Lake CEO David Dickson said:

We look forward to seeing the test work move into steady state and then for the process to be validated by Hatch so that work on the DFS can be completed.

However, on 8 November, Lake Resources shares fell 2.2% amid short pressure from J Capital. The firm had concerns Lake’s DLE technology won’t work as planned and will “still use large amounts of water and produce toxic waste”.

On 21 November, Lake provided another update from the Kachi project. Lake informed the market it has sorted out a dispute with Lilac Solutions. Lilac provides extraction technology at the project, in Argentina. Dickson said:

We are fortunate to be working with Lilac as our partner, who is equally interested in doing things differently so we can efficiently deliver the large volumes of high-quality lithium chemicals needed by battery makers.

Meanwhile, on 23 November, my Foolish colleague James reported the team at Bell Potter retained a buy rating on the company’s share price with a $2.52 price target. This is more than double the current share price.

On 29 November, Lake held its AGM. Chair Stuart Crown shared optimism about the company’s future. He said:

I look to the coming year with great anticipation and pride as a founding shareholder as your company strives to become one of the world’s significant suppliers of high purity lithium products.

Lake Resources share price snapshot

The Lake Resources share price has surged 18% in the past year, but it has slid 4% in the last week.

For perspective, the ASX 200 has returned 1.64% in the past year.

Lake has a market capitalisation of about $1.4 billion based on its current share price.

The post Why did the Lake Resources share price sink in November? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Lake Resources share price heading down stream today?
• Why is the Core Lithium share price in the red today?
• Why are ASX lithium shares getting slammed again on Monday?
• Here are the 10 most shorted ASX shares

Motley Fool contributor Monica O’Shea 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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