Category: Stock Market

The Pilbara Minerals Ltd (ASX: PLS) share price is 3% in the red today.

However, in earlier trade, Pilbara shares tumbled 6.7% from $3.60 to $3.36 before recovering some of its losses. Pilbara shares are currently trading at $3.49, at last look.

Let’s take a look at what could be impacting the Pilbara Minerals share price today.

Why are Pilbara shares falling?

Pilbara shares may be tumbling today, but it is not the only ASX lithium share on the decline. Other lithium explorers falling today include Core Lithium Ltd (ASX: CXO), down 3.17%, and Piedmont Lithium Inc (ASX: PLL), plunging 6.67%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.86% today.

Lithium shares including Pilbara appear to be falling amid reports on a falling lithium price.

Lithium carbonate (99.5% battery grade) has descended 2.37% in a day to 288,000 Chinese Yen (US$41.9), Shanghai Metals Market data shows.

In the past four months, lithium prices have been cut in half, a report out of Bloomberg stated.

Meanwhile, in news out of Chile, all new lithium projects will now need to use a new lithium extraction method to reduce water losses.

Bloomberg reported this government measure may risk future supply from the nation, despite its huge reserves of lithium. Chile mining Minister Marcela Hernando said:

For us, any future development has to done with direct extraction.

Wider market turmoil could also be impacting sentiment in ASX lithium shares today. As my Foolish colleague Bernd reported this morning, the US Federal Reserve lifted rates by 0.25% overnight.

Commenting on the rate rise, Fed chair Jerome Powell said:

It is important that we sustain that confidence with our actions as well as our words.

We are committed to restoring price stability, and all of the evidence says that the public has confidence that we will do so.

The S&P 500 Index (SP: .INX) fell 1.65% on US markets on Wednesday, with the S&P/ASX 200 Index (ASX: XJO) also sliding today, down 0.55%.

US lithium giant Albermarle Corporation (NYSE: ALB) descended 3.06% overnight, however, in after-hours trade it rose 0.25%. Similarly, Livent Corp (NYSE: LTHM) dropped 2.87% on the New York Stock Exchange on Wednesday, but in after-hours trade lifted 0.89% into the green.

Pilbara share price snapshot

The Pilbara Minerals share price has lifted 12% in the last year. However, it has tumbled by 18% in the last month.

Pilbara has a market capitalisation of nearly $10.5 billion based on the current share price.

The post Why is the Pilbara Minerals share price sliding today? appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 lithium shares? You’ll want to read this
• Why are ASX lithium shares sinking today?
• What was with ASX lithium shares today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why New Hope, Pilbara Minerals, Westpac, and Zip shares are pushing higher

Motley Fool contributor Monica O’Shea 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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Looking for a source of passive income? ASX dividend shares are one of the best places to go.

Most shares listed on the ASX will provide you with income. But this doesn’t just come in the form of dividends. So today, let’s discuss three ways ASX shares can pay you a second income stream.

3 ways you can get paid passive income from ASX shares

Dividends

Let’s get the obvious one out of the way. Most large shares on the ASX pay their shareholders dividends. These usually come every six months. Dividends are a portion of a company’s profits that its management decides to give to shareholders.

A company’s dividend is never guaranteed, and companies decide how much each payment will be every six months (or whether there will be a payment at all). But the best ASX shares tend to raise their dividend payments over time too, so if you find a winner, it can pay you passive income for your entire life.

Franking credits

The oft-overlooked companion of dividend payments, franking credits provide income to investors as well. Now, most investors who haven’t retired will only be able to access this income in the form of the tax credits that franking provides. In essence, franking allows most investors to deduct their value from their other income come tax time.

So while you won’t see this passive income in your bank account from the franking itself, you will get a bigger tax return than you otherwise would. But for retirees who have a low level of taxable income, it’s possible to receive an actual cash refund from your franking.

Capital gains

This one is an interesting concept. Good quality shares go up most of the time. That means it’s possible to occasionally sell some and profit from the passive income this provides, while still maintaining your capital base.

To illustrate, a broad-based ASX index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) has returned a historical average of 8.95% per annum since its inception in 2009 (including dividend returns).

If an investor sold 2% of their Vanguard investment every year, it has the potential of providing a meaningful income stream without erasing all of the gains the investment is producing,

The post Here are 3 ways to get passive income from ASX shares appeared first on The Motley Fool Australia.

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More reading

• Is a dividend ETF really better than an ASX index fund for income?
• Want high income right now? These are the ASX dividend shares I would buy
• I bought these two ASX shares last week, here’s why
• How to generate $300 of monthly income from the Vanguard Australian Shares Index ETF
• 3 reasons the Vanguard Australian Shares Index ETF (VAS) could be worth buying today

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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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There could be significant value on offer with the Aristocrat Leisure Limited (ASX: ALL) share price at current levels.

That’s the view of analysts at Goldman Sachs, which have just reiterated their bullish view on the ASX 200 gaming technology share following its investor round table event.

What is Goldman saying about this ASX 200 share?

According to the note, the broker has retained its buy rating and $42.80 price target on the company’s shares.

Based on where this ASX 200 share is currently trading, this implies potential upside of 18.5% for investors over the next 12 months.

And with Goldman expecting a 2.1% dividend yield from its shares, the total potential return stretches beyond 20%.

Aristocrat has a ‘significantly strong’ outlook

Goldman is bullish on this ASX 200 share due to its belief that it has a very positive outlook. This is for both Aristocrat’s core poker machine and digital businesses, as well as its fledging Anaxi (iGaming) business.

In response to the investor round table, the broker commented:

Overall, ALL’s progress remains on track with expectations with Australia gaming noted to be weak (GSe Australia Segment profit for 1H23e expected -28% vs. pcp). We view ALL as strategically the most diversified amongst our gaming coverage, holding a top 3 spot in slot machine sales in the US, having a strong digital gaming offering, and now the launch into the growing iGaming market. While short-term headwinds persist in the form of supply chain, spend for longer term growth etc., ALL’s outlook and iGaming opportunity remain significantly strong, in our view. We are Buy rated on ALL.

All in all, the broker believes this is a top growth share for investors to buy right now.

The post This ASX 200 growth share’s outlook is ‘significantly strong’: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Buy these ASX growth shares now: analysts
• Buy and hold these ASX 200 shares: brokers
• 2 ASX growth shares to buy: Goldman Sachs
• How I’d invest $20,000 in ASX 200 shares to aim for a million

Motley Fool contributor James Mickleboro 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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S&P/ASX 200 Index (ASX: XJO) lithium shares were among the best performers on the index in 2022.

Well, at least up through November. That’s when lithium prices hit all-time highs, having leapt more than 1,250% in just two years.

But 2023 has seen lithium stocks come back to earth as the price for the battery-critical metal they dig from that earth has tumbled.

Today, the leading ASX 200 lithium shares are again underperforming the benchmark index.

The ASX 200 is down 0.7% in afternoon trade, following US markets lower in the wake of the latest interest rate increase from the US Fed.

Here’s how the top lithium stocks are tracking at this same time:

• Pilbara Minerals Ltd (ASX: PLS) shares are down 5.1%
• Core Lithium Ltd (ASX: CXO) shares are down 5.1%
• Allkem Ltd (ASX: AKE) shares are down 3.8%
• IGO Ltd (ASX: IGO) shares are down 1.7%
• Mineral Resources Ltd (ASX: MIN) shares are down 2.5%

So, why are ASX 200 lithium shares under extra pressure today?

Why are ASX 200 lithium shares falling today?

Most of the selling action looks to be related to concerns that the lithium price has further to fall.

And this comes after the price for the ‘white gold’ has already halved since November’s record highs, with lithium currently trading at the lowest levels in 14 months.

That’s cutting into the profitability of ASX 200 lithium shares and is giving some investors pause.

As a BloombergNEF report noted, “Lithium carbonate prices saw a greater rate of decline as greater supply growth outlook for the year coincides with weaker demand sentiment.”

Supply and demand dynamics

On the demand side, 2022 saw Chinese battery manufacturers ramp up production to take advantage of government subsidies, which have now been wound down. China’s government is also ending subsidies for EV purchases. The combination is expected to see a material reduction in lithium demand.

On the supply side, soaring lithium prices encouraged a wave of resource explorers to turn their sights on the battery-critical metal. All while ASX 200 lithium shares have moved to expand their own projects.

A number of new, large-scale projects are coming online over the coming months, including Core Lithium’s Finniss Project in the Northern Territory.

That leads Nio Inc’s CEO, William Li to forecast that the lithium price has further to fall, believing the price will “quite likely” drop to around 200,000 yuan or less in the fourth quarter of 2023.

That’s down from the recent price of 295,000 yuan per tonne.

“Starting from this year, we are going to see more output from upstream. We believe demand probably is not going to be that strong compared with the past,” Li said (quoted by Bloomberg).

If the battery-critical metal does indeed face another 30% plus slide by Q4 2023, ASX 200 lithium shares will likely continue to come under pressure.

Longer-term, any retrace in the big lithium miners’ share prices could prove to be a profitable entry point, with global lithium demand still forecast to continue growing strongly over the next decade.

The post Investing in ASX 200 lithium shares? You’ll want to read this appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium shares sinking today?
• Why Core Lithium, National Storage, OFX, and Polynovo shares are dropping today
• Core Lithium share price tumbles 4% on milestone sales agreement
• What was with ASX lithium shares today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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.

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Are you looking for ASX 200 dividend shares to buy for a second income? If you are, then you may want to check out the two listed below that have been named as buys.

Here’s why they could help you in your second income quest:

Harvey Norman Holdings Limited (ASX: HVN)

Goldman Sachs believes that recent weakness in the Harvey Norman share price could have created a buying opportunity for investors. Especially for those searching for big dividend yields!

The broker believes the market is undervaluing Harvey Norman and highlights that its shares are trading at just 6x FY 2024 estimated earnings ex-property. This is notably cheaper than its rivals.

Goldman currently has a buy rating and $4.70 price target on the retailer’s shares.

As for dividends, the broker is expecting fully franked dividends per share of 36 cents in FY 2023 and then 30 cents in FY 2024. Based on the current Harvey Norman share price of $3.71, this will mean yields of 9.7% and 8.1%, respectively.

Macquarie Group Ltd (ASX: MQG)

Morgans is a fan of this investment bank and is tipping it as a buy.

The broker believes Macquarie is well-placed for the long term thanks thanks to its “exposure to long-term structural growth areas such as infrastructure and renewables.” It also highlights its potential to “benefit from recent market volatility through its trading businesses.”

In respect to dividends, the broker is expecting Macquarie to pay partially franked dividends of $8.28 per share in FY 2023 and $7.64 per share in FY 2024. Based on the current Macquarie share price of $171.32, this implies yields of 4.8% and 4.45%, respectively.

Morgans has an add rating and $222.80 price target on Macquarie’s shares.

The post Buy these ASX 200 dividend shares for a second income: analysts appeared first on The Motley Fool Australia.

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More reading

• 5 ASX shares I’d buy if there is panic selling
• $72m and counting: ASX 200 director’s massive share buy-up continues
• Want high income right now? These are the ASX dividend shares I would buy
• Here are the top 10 ASX 200 shares today
• Guess which ASX 200 director has bought $50m worth of shares in a fortnight?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman and Macquarie Group. 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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ASX lithium shares are tumbling on the market today.

Lithium explorers in the red today include:

• Core Lithium Ltd (ASX: CXO), sliding 5%
• Pilbara Minerals Ltd (ASX: PLS), falling 5%
• Sayona Mining Ltd (ASX: SYA), descending 2.5%
• Lake Resources N.L. (ASX: LKE), plummeting 5.56%
• Mineral Resources Ltd (ASX: MIN), down 2.44%
• Piedmont Lithium Inc (ASX: PLL), tumbling 6.67%
• Allkem Ltd (ASX: AKE), dropping 3.74%

Let’s take a look at what is going on with ASX lithium shares.

What’s happening?

Lithium shares appear to be tumbling today amid a decline in the lithium price and wider market turmoil.

The lithium carbonate price in China has descended 30% in a month to 290,000 yuan (US$42.147), Caixin Global reported today.

This reflects lower Electric Vehicle (EV) sales in China, leading to lower demand for lithium in EV batteries.

Lithium hydroxide is also down 1.29% to US$68,600 on the London Metal Exchange.

Commenting on the lithium price in a research report this morning, ANZ economist Madeline Dunk said:

Lithium prices remained under pressure despite Chile requiring all new projects to use an untried process in a bid to reduce water losses.

The requirement may constrain future production from the world’s biggest holder of reserves just as demand is picking up.

Lithium shares in the United States also descended yesterday, with Sociedad Quimica y Minera de Chile (NYSE: SQM) sliding 1.04%, and Livent Corp (NYSE: LTHM) shares descending 2.87%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is struggling overall amid wider market falls. The S&P/ASX 200 (ASX: XJO) is down 0.74%.

This follows the S&P 500 Index (SP: .INX) tumbling 1.65% overnight amid news that the US Federal Reserve will raise rates by 25 basis points.

Meanwhile, Core Lithium advised the market today it has found a buyer for its maiden lithium production. Spodumene concentrate produced at the company’s Finniss Lithium Operation in the Northern Territory will be sold to long-term customer Sichuan Yahua.

The post Why are ASX lithium shares sinking today? appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, National Storage, OFX, and Polynovo shares are dropping today
• Core Lithium share price tumbles 4% on milestone sales agreement
• What was with ASX lithium shares today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Monica O’Shea 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped deep into the red. At the time of writing, the benchmark index is down 0.75% to 6,963.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 4.5% to 75.5 cents. This is despite the lithium miner announcing a sales agreement with Sichuan Yahua for the sale of additional spodumene concentrate from the Finniss Lithium Operation. Broad weakness in the lithium industry due to pricing concerns has offset this news.

National Storage REIT (ASX: NSR)

The National Storage share price is down 4.5% to $2.40. This follows the completion of the storage company’s institutional placement this morning. National Storage has raised $300 million at a 4% discount of $2.41. The proceeds will be used to fund its strategic growth initiatives (committed acquisitions and developments), repay debt, and strengthen its balance sheet.

OFX Group Ltd (ASX: OFX)

The OFX share price is down 12% to $1.57. Investors have been hitting the sell button in response to a trading update. The money transfer company revealed that it expects to achieve its guidance in FY 2023. However, it appears to have spooked investors by revealing that economic uncertainty has led to a softening of demand in its high value consumer segment.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 13% to $1.80. This follows news that its chairman, David Williams, has sold 4.75 million shares. The medical device company notes that these shares were sold so Williams could part settle a US property purchase. It also highlights that its chairman still holds 21,384,432 shares and does not intend to sell any more shares for the foreseeable future.

The post Why Core Lithium, National Storage, OFX, and Polynovo shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Why is the National Storage share price down 5% today?
• Core Lithium share price tumbles 4% on milestone sales agreement
• What was with ASX lithium shares today?
• This ASX 200 property share just announced a trading halt. What’s going on?
• Is the Core Lithium share price a buy at 84 cents?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ofx Group and PolyNovo. The Motley Fool Australia has recommended Ofx Group. 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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Interested in bolstering your passive income portfolio with just one S&P/ASX 200 Index (ASX XJO) dividend share? Rio Tinto Ltd (ASX: RIO) could be worth considering.

The iron ore giant currently offers a notable 6.2% dividend yield. That means the stock could be capable of paying out $2,000 a month with a smaller initial investment than many of its ASX 200 peers require.

Here’s how I’d aim to build a strong monthly passive income by investing in high-yielding Rio Tinto shares.

I’d buy Rio Tinto shares for $2,000 of monthly passive income

Passive income is just that – income that comes without any active work on your part. I don’t know many people who would turn down the chance to earn $2,000 each month for doing nothing.

And that’s what’s on offer to those holding enough shares in Rio Tinto.

Each of the iron ore favourite’s securities has offered $7.10 of dividends over the last 12 months.

At that rate, a 3,380-strong parcel of the ASX 200 giant’s stock could bring in $24,000 of passive income annually.

That’s before considering potential tax benefits born from the franking credits accompanying the payouts or dividend growth, like that forecasted by Goldman Sachs.

However, Rio Tinto shares don’t necessarily come cheap. They’re currently trading for around $113.91 apiece.

Thus, my desired 3,380 shares would come with an approximate price tag of $385,000. That’s not exactly pocket change. Fortunately, I believe there’s a way to lessen the outright cost.

Making the most of compounding

If my goal was to command a parcel of 3,380 Rio Tinto shares but I didn’t have quite enough cash, I would work to invest a smaller amount each week and employ the company’s dividend reinvestment plan (DRP).

That would allow me to use any dividends I receive to buy more shares without paying a commission. Meanwhile, I would be consistently bolstering my holding on the market.

Thus, my investment could compound over the coming years until it reaches my goal.

Though, it’s worth remembering that past performance doesn’t indicate future performance. Further, as a materials company, Rio Tinto’s earnings – and, as an extension, its dividends – tend to fluctuate alongside commodity prices.

The post Dividend devotee: I’d buy Rio Tinto shares for $2,000 of monthly passive income appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 mining shares to buy with huge upside potential: analysts
• Buy these ASX dividend shares with 5%+ yields: analysts
• 3 top ASX mining shares I’d buy right now
• How I’d aim to retire rich enough to live on passive income from my ASX dividend shares
• How to generate $500 of monthly income from Rio Tinto shares

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 positions in and has recommended Goldman Sachs Group. 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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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has suffered amid the volatility for bank shares around the world. But, the regional bank does offer a very high dividend yield, so does this make it a buy?

There has been a lot of banking pain in the northern hemisphere with the collapse of Silicon Valley Bank (SVB), as well as all the troubles faced by Credit Suisse.

Compared to ASX bank shares, SVB would be considered a huge player. But, in the US it’s just a mid-tier, ‘regional’ bank. With investor concerns about what that could mean for regional banks here, the Bendigo Bank share price has been falling – it’s down 12% from 27 January 2023.

For SVB, there was a ‘duration’ problem, meaning it had short-term, at-call deposits, which it then invested in longer-duration bonds. However, what’s going on in the US and Europe is a different situation to Bendigo Bank’s setup. The ASX bank share has a different, local client base, and it’s not focused on businesses.

Dividend projection

The last two dividends from Bendigo Bank amount to a grossed-up dividend yield of around 9%.

But, in terms of what it’s expected to pay in FY23, Commsec numbers suggest that the regional ASX bank share is forecast to pay an annual dividend per share of 60 cents per.

At the current Bendigo Bank share price, this could translate into an FY23 grossed-up dividend yield of 9.6%.

That’s certainly stronger than what people can achieve from a bank account, or what most ASX dividend shares are expected to pay in this financial year.

Is the Bendigo Bank share price a buy?

Specifically, on Bendigo Bank, I’m not worried about the regional bank collapsing. I believe that FY23 could prove to be a solid year considering interest rates have gone higher and the regional player is able to earn a bigger profit on its lending.

In the FY23 half-year result, it saw cash earnings after tax increase by 22.9% to $294.7 million, while the net interest margin (NIM) improved 19 basis points to 1.88% (the lending profit margin improved noticeably). The cost-to-income ratio improved by 500 basis points to 54.6%, showing it has done well at keeping costs under control. Customer numbers rose 5% to 2.3 million.

But, what does worry me a bit is that credit provisions/bad debt expenses are “likely to come under pressure as the tightening cycle continues and move closer toward historical averages for the bank, which are low by industry standards”.

In other words, the attractive combination of higher lending profits and low bad debts is unlikely to last forever.

I believe that Bendigo Bank is in a good position, with a common equity tier 1 (CET1) ratio of 10.13% at the end of the first half. Its balance sheet is in good shape.

However, if I were looking for passive dividend income, I think there are other areas that aren’t as competitive and commodity-like as banking. If I wanted to buy Bendigo Bank shares, I think this is a decent time to consider the regional bank, but it wouldn’t be at the top of my income stock wishlist.

The post Is the Bendigo Bank share price a good bet with its 9% dividend yield? appeared first on The Motley Fool Australia.

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• Why Bendigo and Adelaide Bank, BHP, IPH, and Woodside shares are dropping
• Why is the Bendigo Bank share price being hit the hardest of the small ASX banks?
• Why are the smaller ASX 200 banks rebounding so strongly on Wednesday?
• ASX 200 bank shares: Are they better prepared than Silicon Valley Bank?
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SVB Financial provides credit and banking services to The Motley Fool. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SVB Financial. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended SVB Financial. 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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ASX lithium share Winsome Resources Ltd (ASX: WR1) is down 3.1% during lunchtime trading, having earlier posted losses of almost 5%.

The ASX lithium explorer closed yesterday trading for $1.45 per share. Shares are currently trading for $1.405 apiece.

The stock is taking a tumble despite the company reporting positive lithium exploration results.

That looks to be partly due to a broader market sell-down today, following the latest overnight interest rate increase from the US Fed.

ASX lithium shares are widely underperforming today, possibly on news of fast-falling lithium prices in China, the world’s top EV producer.

What did the ASX lithium share report?

The Winsome Resources share price isn’t getting a boost despite the company announcing it had intersected further high-grade lithium zones at its 100%-owned Adina project in Quebec, Canada.

The assays included several intersections in excess of 50 metres and above grades of 1% Li2O.

The ASX lithium share reported that one exceptionally high-grade zone returned 2.40% Li2O over 9.0 metres from 49.0 metres, while another returned 2.82% Li2O over 6.0 metres from 84.0 metres.

Commenting on the results, Winsome Resources managing director Chris Evans said:

Results from drilling are demonstrating that Adina is a robust lithium project well placed for development to supply future North American demand. We have intersected mineralisation on every drill section over a 700-metre strike length. More importantly the consistency of grade and width through the core of the deposit is very encouraging.

Assays have now been received from 21 out of the 38 drill holes completed to date.

Winsome is deploying a third drill rig to Adina in the coming weeks.

Winsome Resources share price snapshot

The past month has been a rough one for Winsome Resources, with the company’s shares down 30%.

Still, as you can see on the chart below, the ASX lithium share has been a winner for longer-term shareholders, up 204% over the past 12 months.

The post ASX lithium share Winsome Resources drops despite high grade results. Here’s why appeared first on The Motley Fool Australia.

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More reading

• 4 ASX mining shares that have soared over 150% in a year
• Why BHP, Dicker Data, South32, and Winsome Resources are pushing higher

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.

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