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The Lake NL Resources (ASX:LKE) The stock price has reversed most of its gains over the past month, down 30%.
This comes despite the company not releasing any price-sensitive news since its quarterly business and cash flow report in April.
However, as of this writing, shares of the clean lithium developer are recovering some lost ground, currently up 4.23% at $1.48.
Let’s take a look at what could have been behind the company’s recent stock price plunge.
What’s going on with Lake Resources?
Lake Resources’ stock price rose rapidly from 96 cents in early March to an all-time high of $2.65 in early April.
However, investors are now offloading shares of Lake Resources after sharp falls across the market this month.
This follows a series of market shocks such as the COVID-19 lockdown in China – which has weighed on lithium demand – the Russian war in Ukraine and inflationary movements.
Another possible factor is the price of lithium, with lithium carbonate now trading below highs reached in late March.
Lithium Fellow ASX Shares Liontown Resources Limited (ASX:LTR) and Sayona Mining Ltd (ASX:SYA) are also well in the red over the past month, down 19% and 43% respectively.
For context, the S&P/ASX 200 Index (ASX:XJO) fell 4.7% in the last 30 days.
Moreover, the S&P/ASX 300 Metals & Mining (ASX:XMM) is down 5% over the same period. The index contains companies from the top 300 ASX companies involved in gold, steel and precious metals.
Lake Resources Share Price Summary
Despite the recent drop, Lake Resources has been one of the best places to invest over the past year.
Lake Resources’ share price is up 467% since this time last year and is up 46% in 2022.
Based on valuation bases, Lake Resources commands a market capitalization of approximately $1.99 billion.