Lake Resources’ stock price fell 49% in June. here’s why


Image source: Getty Images

The Lake NL Resources (ASX: LKE) The stock price lost almost half of its value last month. The now-S&P/ASX 200 Index (ASX:XJO) The lithium stock suffered alongside most of its peers during a sell-off event in June.

At the end of June, Lake Resources’ share price was 79 cents, 49% lower than it was at the final close in May. For context, the ASX 200 fell nearly 9% in the past month.

Let’s take a closer look at what went wrong for the ASX 200 beginner.

What weighed on Lake Resources stock price in June?

Lake Resources stock price suffered from an ultimately disappointing month-long rollercoaster ride in June. It all started with a major sale of lithium.

Shares of ASX lithium fell on June 1 amid a bearish rating from Goldman Sachs, an Argentine export benchmark, and reports that a major electric vehicle maker was considering producing its own lithium.

Lake Resources stock fell nearly 13% that day. While its worst falls were yet to come, there was plenty of good news from Lake Resources during the rest of June.

It was added to the ASX 200 and named two leading financial institutions as co-coordinators of its Kachi Lithium Project.

Additionally, the company informed the market of its shift to North American and Asian lithium supply chains.

However, it also announced that its managing director for North America, Steve Promnitz, had resigned, apparently without cause or notice.

In the aftermath, company president Stu Crow assumed the role of executive chairman for six months. Crow will oversee the appointment of a new CEO and board members, as well as the establishment of offices in the United States.

Despite last month’s struggles, Lake Resources’ share price is still trading in the green over the long term. It has gained 148% since this time last year.


Comments are closed.