3 ASX lithium shares that dropped by 12% or more on Monday

Today’s market action has been pretty brutal on ASX lithium shares, with the materials sector one of the worst hit.

The S&P/ASX 200 Materials Index (ASX: XMJ) finished down 5.27% and was the second-worst performing sector on Monday, behind the S&P/ASX 200 Energy Index (ASX: XEJ).

Things weren’t looking too good on a more macro level either, as the S&P/ASX 200 Index (ASX: XJO) also struggled, closing at a 1.6% loss.

Driving the nail deeper, some lithium shares ended Monday down 12% or more. Let’s assess the damage.

Anson Resources Ltd (ASX: ASN)

The Anson Resources share price closed down 16.9% this afternoon. Investors could be reeling after the company’s 16 September announcement that it would raise $50 million as part of a capital raise.

Anson Resources will raise funds from institutional investors, and will issue 139 million shares for 36 cents apiece.

Monies will be used to fund the development of its Paradox Lithium Project in the United States.

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price finished trade down 13.16%. This company has defied sell-offs over the past week and was one of the better-performing ASX lithium shares last Wednesday.

The miner is involved in producing graphite, an important material used in the construction of batteries used in electric vehicles.

The most recent update from the company came last Friday when it announced preliminary drilling results at its Rincon Lithium Project in Argentina, with a better outcome than anticipated.

Morella Corporation Ltd (ASX: 1MC)

The Morella Corporation share price closed the day down 12%.

The ASX lithium share posted its annual report for FY22 to the market on 23 September.

In it the company reported a $682,944 loss after providing for income tax and non-controlling assets for the financial year. That’s significantly lower than the $73 million loss it reported in the previous corresponding period.

Meanwhile, revenues for the company ended at $788,937, while revenues for 2021 were $133,382.

The post 3 ASX lithium shares that dropped by 12% or more on Monday appeared first on The Motley Fool Australia.

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More reading

• Argosy Minerals share price charges higher on lithium update
• Which ASX lithium shares are performing best in 2022?
• These three ASX lithium shares defied Wednesday’s selloff
• Anson Resources share price dives 8% after $50m capital raise
• Why is ASX lithium share Anson Resources on ice today?

Motley Fool contributor Matthew Farley 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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