Why has the Core Lithium share price tumbled 15% in under 2 weeks?

The share price of S&P/ASX 200 Index (ASX: XJO) lithium favourite Core Lithium Ltd (AX: CXO) has struggled in recent weeks.

It has fallen 15% since late last month when it hit its highest point of the year so far. The stock peaked at $1.23 on 30 January. Today, it’s trading for just $1.045.

For comparison, the ASX 200 has gained 0.3% in that time.

So, what appears to have weighed on the Core Lithium share price lately? Let’s take a look.

What’s gone wrong for the Core Lithium share price?

Interestingly, the only price-sensitive news from Core Lithium in recent weeks drove its stock to its aforementioned peak.

The company dropped its results for the three months ended 31 December in late January, sending its shares to close 8.85% higher.

It revealed a $125 million cash balance and noted it’s on track to produce its first spodumene concentrate this quarter.

However, it was not all positive. The company said a particularly wet December left “a significant volume of water” in the base of Grants pit.

That was also mentioned by broker Goldman Sachs as it doubled down on its sell rating, tipping the Core Lithium share price to fall to 95 cents.

The stock tumbled 5.69% in the session following the release of the broker’s most recent note. Though, that fall might also have represented profit-taking following the prior session’s surge.

More recently, the company announced the appointment of chief financial officer (CFO) Doug Warden. Warden has previously held CFO positions at Resolute Mining Ltd (ASX: RSG) and Iluka Resources Limited (ASX: ILU).  

He will take up the position in April, filling the shoes of interim CFO Andrew Forman, who took up the post following the resignation of Simon Iacopetta.

Fortunately, the Core Lithium share price is still in the long-term green despite its recent slump.

The stock has gained 4% so far this year and 28% over the last 12 months. For comparison, the ASX 200 has risen 8% year to date and 3% since this time last year.

The post Why has the Core Lithium share price tumbled 15% in under 2 weeks? appeared first on The Motley Fool Australia.

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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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