PLS, CXO, AVZ: Why are these ASX-listed lithium stocks trading in red?

3 min read | May 10, 2022 03:50 PM AEST | By Bhawna Gupta

PLS, CXO, AVZ: Why are these ASX-listed lithium stocks trading in red? — Image source: © Leimaneagita | Megapixl.com

Highlights

Despite the massive lithium demand, some of the ASX-listed lithium stocks are trading lower today.

The ASX 200 Materials Index is also spotted trading at 16,487.80, down 2.91% at 2.08 PM GMT.

Pilbara Minerals is one of the lithium stocks whose shares are trading in red today.

Lithium is widely used in the batteries of electric vehicles. It is also used in laptop and cell phone batteries and the glass and ceramics industries.

Despite the huge lithium demand, some of the ASX-listed lithium stocks are trading lower today. This might be because of the overall materials industry.

The ASX 200 Materials Index was spotted trading at 16,487.80, down 2.91% at 2.08 PM GMT today (10 May 2022). Besides, materials was the second top worst performer today followed by the energy sector.

On this note, we will discuss three ASX-listed lithium stocks and talk about their performances.

Data Source- ASX

Pilbara Minerals Limited (ASX:PLS)

Pilbara Minerals Limited is an Australian mineral exploration, development, and operations company. The company completely owns the Pilgangoora lithium-tantalum project in Western Australia. Pilbara was established in 2005 and is based in West Perth.

Last month (on 28 April 2022), Pilbara released its March 2022 quarterly updates. Despite the impact of COVID, the business stated that production targets were met, with lithium prices rising to new highs and significant mid and downstream projects progressing forward.

Shares of Pilbara were trading at AU$2.49 per share, down 2.7% at 2.03 PM AEST from its previous close. The company's shares have fallen around 20% YTD.

Core Lithium Limited (ASX:CXO)

Core Lithium Ltd, a mineral exploration firm, focuses on the Finniss Lithium Project and other potential opportunities in the Northern Territory (NT) and South Australia.

Today, the lithium developer Core updated exploration activities and results from the Finniss Lithium Project (near Darwin) in the Northern Territory.

The data, which came from 22,454 metres of RC drilling and 6,619.8 metres of diamond drilling, confirmed mineralised expansions to the south of the main BP33 mineralised system.

Also Read: SYA, PLL, PLS: 3 ASX lithium stocks in focus as demand soars

Resource extension drilling was also undertaken to the north of the Hang Gong prospect and to the north of the Lees prospect, as well as several regional targets.

On Tuesday (10 May 2022), Core's shares were trading a little over 1% lower at AU$1.13 each at 12.51 PM AEST. However, the company's shares have grown around 90% YTD.

Source: Hroephoto | Megapixl.com

AVZ Minerals Ltd (ASX: AVZ)

AVZ Minerals explores tantalum, lithium, tin, and caesium. Its primary purpose is to construct the Manono Lithium and Tin Project in the Democratic Republic of Congo in central Africa (DRC). AVZ holds a 75% stake in the Manono Project.

Last week (4 May 2022), AVZ Minerals announced that the Minister of Mines had issued a Ministerial Decree awarding the Permit d'Exploitation (PE or Mining Licence) for its flagship Manono Lithium and Tin Project (Manono Project).

Shares of AVZ Minerals last exchanged hands at AU$0.78 per share on 6 May 2022 as the company requested a trading halt to release an announcement. The securities will remain halted until the announcement is made or start normal trading tomorrow (11 May 2022), whichever is earlier.

Also Read: CXO, PLS, LTR: Why did these ASX lithium stocks close in green today?

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