Global Lithium share price stumbles despite ‘positive’ step

The Global Lithium Resources Ltd (ASX: GL1) share price stumbled into the red today, finishing the day 4.68% lower at $2.65.

Despite reaching its 52-week highs of $2.93 last Thursday, the share has taken a sharp reversal and now trades more than 9.5% off that point.

Today investors sold off Global Lithium shares following a company announcement.

Why did investors sell Global Lithium today?

The company released results from the second round of preliminary metallurgical test work carried out after diamond core drilling from the Marble Bar Lithium Project.

Specifically, Global says that BGRIMM Technology Group has been engaged by the company to carry out the test work in Beijing, China.

Global notes the preliminary test work achieved “excellent results”, leading to the potential development of flow sheets and other processing options.

Speaking on the release, Global Lithium Managing Director Ron Mitchell said:

This second round of preliminary results from the ongoing metallurgical test work for our MBLP continue to impress with grades and recoveries produced meeting industry expectations. Achieving lithium recoveries of 85% is certainly something we are excited about.

These results, as did the initial results released in August, fully support the prospect of MBLP becoming a standalone lithium operation in the years to come.

The company says that further test work is required to improve the concentrate grade and lithium recovery.

It also says that further investigation into additional trace elements will be conducted on test samples.

The down-leg in Global Lithium’s share price today is at odds with the remainder of the ASX lithium basket, itself catching a strong bid today as the price of lithium carbonate reached all-time highs again last week.

Chief to the upside is the demand-supply equation for the industry whereby demand for electric vehicles (EVs) is seeing equally as strong demand for batteries to fulfil this gap in the market.

The result has been a sustained and consistent upswing in the price of lithium for at least 12 months, creating a potential barrier to entry in the process, but also a large incentive to explore and produce the battery metal.

In the meantime, the Global Lithium share price has soared 516% in the past 12 months.

The post Global Lithium share price stumbles despite ‘positive’ step appeared first on The Motley Fool Australia.

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More reading

• 3 ASX lithium shares smashing new, all-time highs on Monday
• Global Lithium share price sinks despite lithium project update
• Back baby! 5 ASX lithium shares smashing all-time highs today
• Why is the Global Lithium Resources share price rocketing 11% today?
• Mineral Resources share price lifts amid lithium stock buy-up

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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