The Australian Strategic Materials Ltd (ASX: ASM) share price is handing back all of Monday’s gains and then some today.
At the time of writing, the Australian Strategic Materials share price is $5.06. That’s 12% lower than its previous close and 3.78% lower than it was at the end of Friday’s session.
For context, the broader market is in the green today. Right now, the All Ordinaries Index (ASX: XAO) is recording a 0.17% increase.
Let’s take a look at what’s going on with the critical metals producer this week.
Australian Strategic Materials share price tumbles
Australian Strategic Materials’ shares are plunging back into the red on Tuesday.
It surged 9% yesterday after it exited a trading halt with news Korea’s KCF Energy is investing US$15 million ($21.44 million at today’s exchange rate) to buy new shares in the company for $8.90 apiece.
The Seoul-based company also agreed to revise the pair’s framework agreement and negotiate a five-year offtake agreement for the supply of 2,800 dry metric tonnes of NdFEB alloy from the Korean Metals Plant.
The framework negotiations will see the companies discussing more investments in the ASX-listed critical metals producer.
Thus, today’s drop could be a simple market correction after yesterday’s buying frenzy.
This week’s movements included, shares in Australian Strategic Materials are trading 55% lower year to date. Though, they have gained 19% since this time last year.
The post Australian Strategic Materials share price sinks 12% following rally appeared first on The Motley Fool Australia.
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More reading
- Here’s why the Australian Strategic Materials share price is surging 31% today
- Why is the Australian Strategic Materials share price frozen today?
Motley Fool contributor Brooke Cooper 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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