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The market may be a sea of red on Wednesday but that hasn’t stopped the Peter Warren Automotive Holdings Ltd (ASX: PWR) share price from racing higher today.

In morning trade, the car dealership company’s shares are up 12% to $2.82.

This compares very favourably to the All Ordinaries index, which is down a disappointing 2.7% this morning.

Why is the Peter Warren Automotive share price defying the selloff?

Investors have been bidding the Peter Warren Automotive share price higher today after the company revealed that it has a new major shareholder.

According to an initial substantial holder notice, SMA Motors picked up ~15.7 million Peter Warren Automotive shares from Quadrant Private Equity for $50 million on Tuesday.

SMA Motors paid an average of approximately $3.19 per share for the stake, which represents a sizeable 25.6% premium to where the Peter Warren Automotive share price was trading at yesterday’s close.

Someone was clearly very keen to get a slice of Peter Warren Automotive!

What is SMA Motors?

SMA Motors is the name behind Sutton Motors, which is one of Sydney’s largest dealer groups. It operates 24 franchised motor vehicle dealership sites, covering 27 different franchises.

Why it bought the 15.7 million stake from Quadrant Private Equity remains unclear. But investors may be hoping that this leads to a full takeover approach in the near future. Time will tell if that is the case.

Following today’s gain, the Peter Warren Automotive share price is trading largely flat year to date.

The post In a sea of red, guess which ASX All Ords share is booming 12% today appeared first on The Motley Fool Australia.

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More reading

• 5 ASX All Ords shares trading ex-dividend on Thursday
• 6 ASX shares Morgans would buy right now
• 3 ASX All Ords shares that saw major price action on FY22 results

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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The a2 Milk Company (ASX: A2M) share price has jumped almost 30% higher in the last six weeks after reporting a solid FY22 result with revenue and earnings approximately 5% ahead of consensus expectations.

Leading fund manager Perpetual Equity Investment Company (ASX: PIC) continues to see “material upside” to the current a2M share price.

In the listed investment company’s August update, it said the most pleasing aspect of the a2M result was the strong growth of the China Label infant formula business. The listed investment company (LIC) noted this is a highly competitive channel and despite the industry headwinds from a significantly lower birth rate in China, a2M’s infant formula business in China grew its revenue by 40%. 

According to the update:

A2M is one of the only international brands to deliver growth during this period. The fact that A2M sales responded so strongly to in-country marketing demonstrates the strength of the brand which is a core pillar of the Manager’s investment thesis.

The fund manager believes the current management team is doing an excellent job “transforming A2M into a sustainable business for the long term by increasing marketing and shifting volumes away from the volatile Daigou distribution channel”.

It notes the strong balance sheet with no debt and over $NZ800m of net cash, enabling a2 Milk to launch a $NZ150m share buyback program. 

The fund manager does note the company is currently in the process of renewing its China Label product registration, saying it has reflected this risk in the size of the position within the portfolio. As at 31 August 2022, A2M comprised 3.1% of the PIC portfolio.

This aside, PIC said it continues to see material upside to a2M’s current share price.

In early Wednesday trading, a2 Milk shares are tracking the ASX 200 lower, down 14 cents to $5.55 each. The a2 Milk share price trades on a trailing price-to-earnings (P/E) ratio of 34 times earnings. 

The post Leading fund manager sees “material upside” to the a2 Milk share price appeared first on The Motley Fool Australia.

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More reading

• Broker says the A2 Milk share price can charge even higher
• Why A2 Milk, BHP, Lovisa, and Nickel Industries shares are charging higher
• Why is the A2 Milk share price storming 6% higher on Monday?
• A2 Milk share price on watch following China update
• Why A2 Milk, Life360, Nine, and Ramsay shares are dropping

Motley Fool contributor Bruce Jackson 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 recommended A2 Milk. 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 Novonix Ltd (ASX: NVX) share price is on the back foot in Wednesday morning trade.

Amid a massacre on the market, shares in the battery technology company are trading 7.82% lower to $2.24. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is taking a bath, sporting a 2.7% decline in the early hours.

Without a shred of developments from Novonix directly today, we must turn to the bigger picture.

Inflation data brings more pain

The reality is the Novonix share price is not alone on a day like today. To paint the picture of the bleak sentiment on Wednesday, only three ASX shares out of the 200 are not in the negative.

It’s fair to say that investors are selling across the board following the release of the latest consumer price index (CPI) data in the United States overnight. According to the data, the index increased 0.1% month on month, bringing the increase over the last year to 8.3%.

Unfortunately, market pundits were forecasting a relief from inflation growth. Heading into the announcement, the general expectation was for a 0.1% decline month on month. In turn, the US market — including Nasdaq-listed Novonix share price — took the foot off the gas last night.

At the time of writing, ASX tech shares are feeling the sharp sting of inflation the most. While there isn’t a single sector in the green, the tech segment is bleeding a horrific 3.47% so far today.

When it comes to the likes of Novonix shares, investors tend to become extra cautious of unprofitable companies in light of high inflation data. This reaction is due to the high likelihood of further interest rate increases by central banks to stifle inflation.

Market expectations for Fed Rate Hikes after today’s CPI report…
September: 75 bps hike to 3.00-3.25%
November: 75 bps hike to 3.75-4.00%
December: 25 bps hike to 4.00-4.25%

Change from yesterday: 25 bps upward shift, with November moving from 50 bps hike to 75 bps hike.

— Charlie Bilello (@charliebilello) September 13, 2022

https://platform.twitter.com/widgets.js

As shown above, bond markets are now pricing in more dramatic rate increases over future months. As a result, investors will be less inclined to invest in riskier assets if cash rates are attractive.

Where has the Novonix share price been?

Today’s tumble in the Novonix share price only adds to what has been a difficult year. The theme of rising rates and cost of capital has hit the battery technology company like a wrecking ball.

Since the beginning of 2022, Nonovix shares have experienced a 75.6% ride to the downside. Remarkably, in the past year, the company once traded as high as $12.47 — now a distant memory.

The post Novonix share price sinks 7% amid Wall Street walloping appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price soaring 7% on Tuesday?
• Who owns shares in ASX tech company Novonix right now?
• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price soaring 11% today?

Motley Fool contributor Mitchell Lawler 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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The Rio Tinto Limited (ASX: RIO) share price hasn’t been able to stand up against the broader market rout despite announcing a major new partnership with its largest global customer.

Shares in the mining giant are currently down 2.64% to $94.20 apiece. That’s roughly in line with the 2.81% loss in the S&P/ASX 200 Materials Index (ASX: XMJ) and the 2.82% fall in the S&P/ASX 200 Index (ASX: XJO).

It comes as Rio and China Baowu Steel Group Co. Ltd (Baowu) announce they will invest US$2 billion ($3 billion) to develop the Western Range iron ore project in the Pilbara.

The companies have formed a joint venture (JV) where Rio Tinto will own 54% of the entity.

Rio Tinto share price getting swept up in the sell-off

However, the news couldn’t save the Rio Tinto share price from diving in early trade.

The fall also comes despite a more than 1% gain in the iron ore price to around US$104 a tonne.

But Rio Tinto isn’t the only ASX miner slipping this morning. The BHP Group Ltd (ASX: BHP) share price has lost 2.04% to $38.50 and Fortescue Metals Group Limited (ASX: FMG) is trading 3.89% lower at $17.52 a share.

New 25 million tonne JV

The Western Ranges annual production capacity is estimated at 25 million tonnes of iron ore. The investment from Rio Tinto and Baowu will be used to build a primary crusher and an 18-kilometre conveyor system linking it to the existing Paraburdoo processing plant.

The miner said that construction is scheduled to start in early 2023 with first production in 2025. Rio Tinto’s share of the costs ($1.3 billion) is already included in its capex guidance for 2023 and 2024. Rio Tinto is forecasting a capex of around $9 billion to $10 billion in each of those years.

Sales agreement with Baowu

While there is no upfront payment consideration, the JV partners have entered into an iron ore sales agreement. Baowu will buy up to 126.5 million tonnes of iron ore over approximately 13 years at market prices.

The volume reflects the Chinese steel mill’s 46% interest in the project, which is tipped to produce 275 million tonnes of ore over the period.

Rio Tinto’s iron ore chief executive Simon Trott said:

We have enjoyed a strong working relationship with Baowu for more than four decades, shipping more than 200 million tonnes of iron ore under our original joint venture, and we are looking forward to extending our partnership at Western Range.

Long-standing partnership

Rio Tinto and Baowu have been working in partnership in the Pilbara since 2002. It formed another JV, Bao-HI, to develop the Eastern Range deposits in the Hamersley Ranges and Western Range.

Baowu Resources’ chairman Shi Bing commented:

The Bao-HI joint venture has been successfully operating for more than 20 years, leading us to a win-win result, and reaping friendship and trust. We hope that the two parties will deepen the mutually beneficial and win-win partnership, continue to carry forward the spirit of sincere cooperation.

Rio Tinto share price snapshot

The Rio Tinto share price has fallen 12% over the past year while the ASX 200 has declined 8%.

In contrast, the BHP share price has gained 4% while the Fortescue share price has dropped 3% over the period.

The post Rio Tinto share price slides despite new $3bn iron ore project appeared first on The Motley Fool Australia.

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More reading

• Why is the Fortescue share price getting hammered on Wednesday?
• The BHP share price is tumbling today, but here’s why Macquarie is bullish
• Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Fortescue’s Twiggy piles $120m into junior miner slated for ASX listing

Motley Fool contributor Brendon Lau has positions in BHP Billiton Limited and Rio Tinto Ltd. 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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Worse than expected inflation numbers released by the Federal Reserve yesterday has sent US stock markets into freefall. Investors are pumping the brakes on the prices of shares, bonds, most commodities and cryptocurrencies, as reported by the Associated Press (AP).

The inflation rate has reportedly slowed down, but not fast enough to meet experts’ expectations. It finished at 8.3% in August and was expected to lower to 8.1% for the month. Inflation peaked for the year at 9.1% in June.

Prices of food, accommodation and medical care were said to push inflation higher, with the cost of goods overall rising 0.1% higher than in July, as reported by The Guardian. This was partially offset by a dip in energy prices such as petrol. A gallon is trading for $3.71 compared with June’s high of $5.

Overall, inflation is the highest the US has seen for decades. This has prompted fears the Fed will continue to pursue its aggressive interest rate hikes when it meets next week. Interest rates are expected to increase by an additional 75 basis points, the same increase seen when the Fed increased rates in July.

More concerning is that it’s becoming less likely that the Fed will be able to get a grip on inflation while not pushing the economy into a recession at the same time. Fed Chair Jerome Powell stated that it will use its monetary tools “forcefully” to get inflation under control.

How the markets responded

The S&P 500 Index (SP: .INX), Nasdaq Composite (NASDAQ: .IXIC), and the Dow Jones Industrial Average Index (DJX: .DJI) have made new lows since July. The AP also notes that the Dow experienced the steepest sell-off in the last two years. All but six stocks in the S&P 500 fell in US trading today.

The S&P 500 Index fell 4.32% to 3,932, while the Nasdaq slumped by 3.53% to 11,633. The Dow fell by 3.94% to 31,104.

Foreshadowing further volatility in the days ahead, the Chicago Board Options Exchange’s Cboe Volatility Index (VIX) surged 14.24% to 27.27, making a new high for the month.

Bitcoin (CRYPTO: BTC) also took a hit, losing 7.89%, which broke the AU$30,000 support zone it has held since July.

All of the sector indices of the S&P 500 are in the red, including defensive sectors such as healthcare and consumer staples. The worst-hit indices included the S&P 500 Information Technology Index, which lost 5.35% and the S&P 500 Consumer Discretionary Index, down 5.22%.

And finally, while the prices of riskier assets cratered, the yields of US treasury notes, the safest of all investments, soared to 3.784%. This is the highest yield since 2007.

The post Why did US stock markets just suffer their worst day in 2 years? appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto share price slides despite new $3bn iron ore project
• Inflation fears crash Pilbara Minerals share price party
• Why Crypto stocks plunged today
• Why is the Fortescue share price getting hammered on Wednesday?
• Why is the BrainChip share price sinking 8% on Wednesday?

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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The Pilbara Minerals Ltd (ASX: PLS) share price has been on a sensational run of late.

However, that run has come to a grinding halt on Wednesday.

In morning trade, the lithium miner’s shares are down 7% to $4.41.

Is the Pilbara Minerals share price party over?

Investors have been selling down the Pilbara Minerals share price on Wednesday after US inflation came in hotter than expected.

This has sparked fears that the US Federal Reserve will have to be even more aggressive than expected to bring inflation under control.

This could be bad news for a couple of reasons. Firstly, higher interest rates have an impact on valuations. The higher they go, the less investors are willing to pay to own stocks.

In addition, the higher that interest rates go, the more likely that the US economy will fall into a recession in the near future. This could put consumer spending at risk and lead to less demand for electric vehicles.

If this happens, then lithium demand could soften, potentially putting downward pressure on the price of the white metal.

Is this a buying opportunity?

The team at Macquarie are likely to see the weakness in the Pilbara Minerals share price as a buying opportunity. Last month, the broker put an outperform rating and $5.60 price target on its shares.

This implies potential upside of almost 27% for investors over the next 12 months.

The post Inflation fears crash Pilbara Minerals share price party appeared first on The Motley Fool Australia.

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More reading

• Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• 3 ASX 200 mining shares that smashed all-time highs on Tuesday
• Why did the Core Lithium share price leap another 6% on Tuesday?
• Runaway train? Pilbara Minerals share price leaps to yet another all-time high

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Today’s inflation report sent the crypto world reeling as a sell-off hit the entire industry. Headline inflation was 0.1% month over month in August, but core inflation (which excludes energy) was up 0.6%. On a year-over-year basis, overall inflation was 8.3%. The market had rallied in recent days on hope that inflation is slowing, but that doesn’t appear to be the case, at least for now. 

Three of the big movers in crypto today are Coinbase Global (NASDAQ: COIN), which fell as much as 9.3% and is down 6.6% as of 2:30 p.m. ET; Silvergate Capital (NYSE: SI), which fell 7.4% and is now down 6.4%; and cryptocurrency Solana (CRYPTO: SOL), which is down 7.2% today. 

So what 

From a trading perspective, the move is pretty simple. Higher inflation likely means the Federal Reserve will increase interest rates for longer than investors were hoping. That results in a lower valuation for assets like stocks, especially growth stocks, and that’s why the Nasdaq Composite is down 4.3% today. Crypto values are generally correlated with stocks, which is why crypto valuations plunged today. 

A drop in crypto prices is generally seen as negative for Coinbase and Silvergate, which offer crypto solutions to their customers. Coinbase’s trading, for example, tends to fall in down markets and that’s where the company generates most of its revenue. Silvergate may not see adoption of crypto and digital banking products increase if crypto values drop. 

As much as the crypto industry would like to think that it’s independent of the broader market, trading has been driven by traditional financial trends like interest rates and economic activity. Given the fact that inflation is still high and the Federal Reserve is likely to act aggressively next week to increase rates, that means lower valuations for crypto and crypto-related companies. 

Now what 

The market is trying to grapple with multiple competing trends right now. Employment is strong and much of the economy is doing well, but inflation is high and interest rates are going up, which generally leads to a recession. 

As these macro factors persist, the crypto market continues to innovate and build, which is a chaotic process. There are days when it seems like crypto could enable great innovations and others that it seems like hacks and scams are more common than real builders. 

I think the crypto industry has a lot going for it long-term, but this is like investing in internet stocks in the 1990s when the industry was very immature. No one knew exactly which companies would win or what business models would be best, but it was clear there was an opportunity.

As painful as days like this are, they can also be great buying opportunities. A few years from now no one will remember a single day’s drop, but investors never forget buying great companies when the market is down because that’s where the big money is made. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Crypto stocks plunged today appeared first on The Motley Fool Australia.

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More reading

• Why Bitcoin and Solana jumped on Monday
• Why Bitcoin, Ethereum, and Solana were up Thursday morning
• 3 reasons to invest in Ethereum right now
• Why Ethereum, Dogecoin, and Solana lost altitude on Thursday
• Why Ethereum and other cryptos jumped Wednesday

Travis Hoium has positions in Coinbase Global, Inc. and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Coinbase Global, Inc. and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Silvergate Capital Corporation. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Fortescue Metals Group Limited (ASX: FMG) share price is one of many ASX shares that are being sold off today. It’s currently down more than 3%. Why?

Well, for starters, it was a bad day on overseas share markets. Volatility is picking up.

The NASDAQ-100 (NASDAQ: NDX) fell by 5.5% and the S&P 500 Index (SP: .INX) dropped by 4.3%.

ASX shares often follow on from what happened in the US share market if there was a major positive or negative movement.

Why did the US share market experience its biggest fall since June 2020? It happened because US inflation in August was up 8.3% year over year, which was 0.1% more than July. According to reporting by CNBC, economists polled by Dow Jones were expecting a month over month decline of 0.1%. In other words, inflation is as strong as ever.

This happened despite fuel prices falling in August. CNBC reported that core CPI inflation, which removes food and energy costs, rose 0.6% month over month from July.

Iron ore price forecast reduced

One of the key elements for Fortescue’s profit-generating efforts is the iron ore price. The higher the iron ore price, the more revenue and net profit after tax (NPAT) that Fortescue can make from the same iron ore shipments. This can also have an impact on the Fortescue share price.

However, according to reporting by the Australian Financial Review, Fitch Solutions has downgraded its short-term iron ore price forecasts due to the economic situation.

Fitch is projecting the average iron ore price for 2022 to be US$115 per tonne, which is a decrease from the last forecast of US$130 per tonne.

The iron ore price has been trading between US$95 per tonne to US$105 per tonne. It was noted that inventories have recovered from the low experienced in June.

It doesn’t think prices will fall or rise a lot from here. Fitch said:

Miners are already beginning to react to recent price declines given their operating costs and capital expenditure costs remain elevated.

As such, we believe that prices will receive some support from supply constraints through the fourth quarter and into 2023 as higher cost miners have in several instances reduced production in response to current price levels.

Fitch suggested that the recovery of inventories and slowdown of the global economy indicate that there may be a limited upside for the iron ore price. Buyers could take advantage of the lower prices and build inventory further.

Fitch Solutions has forecast that the iron ore price will average $US100 per tonne in 2023, $US90 a tonne in 2024 and $US80 a tonne in 2025.

This could have a direct future impact on the Fortescue share price because of how it would impact the profit and cash flow.

Fortescue share price snapshot

Over the past month, Fortescue shares have dropped 8%.

The post Why is the Fortescue share price getting hammered on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Fortescue’s Twiggy piles $120m into junior miner slated for ASX listing
• 3 ASX 200 mining shares going great guns on Monday
• Here’s how long I plan to hold my Fortescue shares

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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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The BrainChip Holdings Ltd (ASX: BRN) share price is having a tough day.

In early trade, the semiconductor company’s shares are down 8% to 92 cents.

Why is the BrainChip share price sinking?

The BrainChip share price is under pressure on Wednesday amid a broad market selloff.

This follows a particularly poor night on Wall Street, which saw the tech-focused NASDAQ index crash 5.2% lower.

Investors were selling down US stocks overnight after the latest US inflation reading came in hot when the market was betting on it cooling. This has sparked fears that the US Federal Reserve will have to aggressively increases interest rates to tame inflation.

CNBC reports:

The report is one of the last the Fed will see ahead of their Sept. 20-21 meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point interest rate hike to tamp down inflation. The unexpectedly high August report could lead the Fed to continue its aggressive hikes longer than some investors anticipated.

This would not be good news for tech shares such as BrainChip. The higher that interest rates go, the more they squash the valuations of growth stocks.

Though, it’s unclear if anything can really squash BrainChip’s valuation. It is still commanding a market capitalisation of over $1.5 billion despite generating next to no revenue and having largely unproven technology.

Time will tell if the company ever lives up to the hype and justifies this valuation.

The post Why is the BrainChip share price sinking 8% on Wednesday? appeared first on The Motley Fool Australia.

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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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The Lake Resources N.L. (ASX: LKE) share price is on the move in early trade on Wednesday following a company announcement.

At the time of writing, shares in the lithium explorer are down 18% at $1.04 apiece.

What did Lake announce?

The company updated investors on the progress made on its Pilot Project Agreement, dated for around 21 September 2021 with Lilac Solutions Inc.

Lake says that Lilac will “earn in to the Kachi Project, up to a 25% stake, based on achievement of certain milestones under the agreement by an agreed date”.

Such milestones include completing at least 1,000 hours of operations and producing a lithium carbonate feed totalling at least 2,500 kg from the site.

However, it’s understood that a dispute has arisen with respect to the timing of these milestones.

Whilst work has been continuing at Kachi, a dispute has arisen between Lake and Lilac as to the date by which these milestones need to be achieved, with Lake considering the milestones must be achieved by 30 September 2022 and Lilac considering it has until 30 November 2022 to do so.

To resolve the dispute, Lake has exercised its rights to have the dispute resolved either by agreement of both Lake and Lilac or by arbitration.

If the milestones are not achieved by the required date, then Lake has certain buy back rights under the agreement which it may exercise at its option.

Until the matter is sorted, work continues to progress on the definitive feasibility study (DFS) at the site.

More updates regarding any resolution and the ongoing DFS will be released from Lake in due course.

The post Lake Resources share price slides 18% amid market rout and project dispute appeared first on The Motley Fool Australia.

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• Why did the Core Lithium share price leap another 6% on Tuesday?
• Are Yamaha and Toyota about to upend the ASX lithium share party?
• Broker tips 100% upside for Lake Resources share price
• Here are the 10 most shorted ASX shares
• Here are the 3 most heavily traded ASX 200 shares on Friday

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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