PLS Group Ltd (ASX: PLS) shares came under heavy pressure in Monday afternoon trade, sliding around 5% to $5.60.

The move extends a weak patch for the lithium producer, with the stock now down about 11% over the past month. That stands in sharp contrast to the broader market, with the S&P/ASX 200 Index (ASX: XJO) up roughly 2% over the same period.

Even so, PLS remains one of the ASX’s standout long-term performers, up 33% year to date and an extraordinary 302% over the past 12 months.

So why are PLS shares going backwards lately?

Lithium sentiment turns lower again

PLS sits at the centre of the global lithium cycle. That means its share price moves closely with spodumene and lithium carbonate pricing, which swing sharply with shifts in supply and demand expectations.

Today’s decline reflects renewed softness in lithium sentiment. Investors are once again questioning whether the market is still dealing with structural oversupply.

Global production has ramped up aggressively in recent years, while electric vehicle demand growth has cooled from earlier expectations. At the same time, the system is still working through elevated inventory levels built up during the boom.

When lithium sentiment weakens, the price of PLS shares almost always follows, even without any company-specific news.

Profit-taking after huge run

The selling is not isolated. Other lithium and battery materials stocks typically move in the same direction when sentiment turns.

The broader ASX resources sector has also been choppy, adding to the pressure. In softer market conditions, investors tend to rotate out of high-beta commodity names first, and lithium producers sit right at the centre of that trade. That rotation can easily amplify intraday moves, even when fundamentals remain unchanged.

PLS has also been volatile for months. After strong rallies driven by rebounds in lithium pricing, the stock often pulls back when momentum fades.

That’s the nature of cyclical commodities. Traders chase upside during rallies and exit quickly when sentiment shifts. That “hot money” effect can turn a normal trading day into a sharp 5% move.

What matters next for PLS shares

In the short term, PLS will focus on one of its key growth projects, P2000 at Pilgangoora. According to a release issued last week, PLS has approved early spending on the project, which it describes as the world’s largest independent hard-rock lithium operation.

Longer term, the key drivers for PLS shares remain unchanged: lithium pricing, electric vehicle demand growth, and supply discipline across the industry. They will determine the next major move for PLS shares.

The post PLS shares drop 5%: What’s driving the move? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

Northern Star Resources Ltd (ASX: NST) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed on Friday trading for $20.87. In early afternoon trade on Monday, shares are changing hands for $21.12 apiece, up 1.2%.

For some context, the ASX 200 is down 0.1% at this same time amid news that Iran has once more closed the vital Strait of Hormuz shipping route.

Northern Star shares look to be catching some tailwinds today from an uptick in the gold price. Gold is currently fetching US$4,188.41 per ounce, up 0.8%.

Still, with the gold price now down 3.5% in 2026, and Northern Star flagging rising costs and lower production for the full 2026 financial year (FY 2026), shares in the Aussie gold giant are down 13.5% year to date.

That’s well behind the 1.1% gains posted by the benchmark index since market close on 2 January.

And that underperformance will have only been modestly eased by the miner’s 25 cent per share dividend payout on 26 March. Northern Star stock currently trades on a 2.6% fully-franked trailing dividend yield.

Which brings us back to our headline question.

Northern Star shares: Buy, hold, or sell?

Baker Young’s Toby Grimm recently ran his slide rule over the Aussie gold mining giant (courtesy of The Bull).

“The emergence of prominent US based activist investor Elliott Investment Management has prompted optimism surrounding the gold miner,” Grimm said.

If you missed it, in early June, the United States-based investment manager reported that it had upped its stake in Northern Star to more than $1 billion. That sees Elliot among the top five shareholders in the ASX 200 gold stock.

Citing a series of “operational missteps and repeated failures to execute capital projects on time and on budget”, the US fund manager suggested a major board shakeup, a strategic review, and potential sale of the gold miner.

But Grimm doesn’t believe these steps justify holding onto the stock at this time.

Summarising his sell recommendation on Northern Star shares, he concluded:

However, in our view, it doesn’t alter the underperformance of NST’s asset base involving production volumes, costs and capital expenditure requirements.

A new management team will likely rebase expectations. But we would seek alternative gold exposure for those still playing the theme. The shares have fallen from $31.73 on March 2 to trade at $21.44 on June 18.

The post With the gold price up on Monday, are Northern Star shares a good buy now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

It has been a huge year for Mineral Resources Ltd (ASX: MIN) shares, but Monday has brought a bit of selling pressure.

At the time of writing, the Mineral Resources share price is down 2.91% to $67.14.

Even after today’s fall, the ASX 200 mining stock is still up 23% in 2026 and around 220% higher than this time last year.

So, what is the market weighing up today?

Onslow Iron drives the turnaround

The latest attention comes after Mineral Resources posted what has been called the strongest 6-month period in its history.

The company has benefited from its iron ore business, particularly the Onslow Iron project, which has been ramping up after a difficult start.

Onslow Iron is currently running at a 35 million tonne annualised rate, with 40 million tonnes possible within two years.

Evidently, this has helped Mineral Resources return to a much stronger financial position of late.

The company generated a record EBITDA of $1.2 billion for the half, while revenue came in at $3.05 billion. It also posted a net profit of $573 million, compared with a heavy loss a year earlier.

Iron ore delivered $519 million in EBITDA, while lithium has also been helped by the recent recovery in spodumene prices.

Leadership remains in focus

While the numbers have improved, the leadership question is still hanging over the company.

According to The Australian, Mineral Resources has been working through a governance review after issues involving related-party dealings and company resources.

Chair Mal Bundey has indicated the search for a new chief executive is still underway, although the timing remains unclear.

The report suggests Ellison could stay in the top job until the completion of a major project in 2027 and then leave on his own terms.

That leaves investors with two things to weigh up.

On one hand, Mineral Resources is in a much better operating position than it was a year ago. On the other, the leadership issue still needs to be resolved before the company can fully move on from a messy period.

Could dividends return?

Another point getting attention is the possibility of dividends returning.

Mineral Resources stopped paying dividends in 2024 as it focused on reducing debt and protecting its balance sheet.

The company’s net debt has reportedly fallen slightly to $4.9 billion, while free cash flow improved to $292 million for the half.

While no dividend has been declared, the company has flagged that payouts could return if liquidity and leverage targets are met.

That would be a big change after a difficult period for shareholders.

The post Mineral Resources shares slide as CEO uncertainty weighs in appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.