PLS, MIN, PLL: How did these 3 ASX lithium stocks perform in May 2022?

Highlights

• Many of the lithium stocks closed in red today, including Pilbara, Piedmont and Mineral Resources.
• The fall in share prices might be because Argentina has set a reference price for lithium carbonate exports.

Since Anthony Albanese and the Labor Party won the Federal Election 2022 last week, ASX lithium shares have outperformed the benchmark quite easily.

But many of the lithium stocks closed in the red today. Some of them include Pilbara Minerals (-22%), Mineral Resources (-8%) and Piedmont Lithium (-8%).

What could be the reason for the share price fall?

Argentina, which has some of the world's largest known lithium reserves, is partly responsible for this. According to The Australian, Argentina has set a reference price of US$53 per kilogramme for lithium carbonate exports. This follows the discovery of irregularities in shipments over the last two years.

According to Bloomberg, the reference price will help strengthen customs' capacity to oversee exports and avoid under-invoicing.

Let's wait to see how these lithium stocks will perform in the future. Before that, let's look at their last month's (May 2022) performance.

Image Source: © 2022 Kalkine Media ®

Data Source- ASX

Pilbara Minerals (ASX:PLS)

Pilbara Minerals Limited, an Australian mineral exploration company, owns Pilgangoora lithium-tantalum project in Western Australia. Pilbara was founded in West Perth in 2005.

Pilbara Minerals (ASX:PLS) and Calix (ASX:CXL) have announced today (1 June 2022) that they have agreed on key commercial terms for the formation of a Joint Venture for the future development of a Demonstration Plant, as well as the potential future commercialisation of the (Mid Stream) process.

Shares of Pilbara closed 22.03% lower today at AU$2.30 each. However, the stock recorded a 3.5% growth in May alone.

Source: © Malpetr | Megapixl.com

Mineral Resources Ltd (ASX:MIN)

Mineral Resources Ltd is a mining services company based in Australia. The mining portfolio of the company includes hard-rock lithium and iron ore properties.

On 24 May 2022, Buru Energy Limited (ASX:BRU) and Mineral Resources' wholly-owned subsidiary Energy Resources Limited (EnRes) announced a farmout of Buru's interest in L20-1 in the onshore Carnarvon Basin to EnRes.

Mineral Resources' shares ended 8.07% lower today at AU$58.70 apiece. However, the shares have grown around 9% in May 2022.

Also Read: Here's why Core Lithium (ASX:CXO) shares gained 422% in a year

Piedmont Lithium Inc (ASX:PLL)

Piedmont Lithium Inc, a leading, diverse lithium developer, is committed to facilitating the transition to a net-zero world and developing a clean energy economy in North America.

By processing spodumene concentrate produced from assets in which it has an economic interest, the company hopes to become one of the largest lithium hydroxide producers in North America.

Piedmont Lithium's projects include its wholly-owned Carolina Lithium and LHP-2 Projects in the United States and partnerships in Quebec's Abitibi Hub with Sayona Mining (ASX:SYA) and in Ghana with Atlantic Lithium. These geographically diverse operations will allow the company to play a critical role in assisting America's transition to decarbonisation, electrification of transportation, and energy storage.

Piedmont Lithium's shares last exchanged hands at AU$0.86 per share, down 8.02% on ASX today (1 June 2022). The shares have fallen around 0.53% in the last month.

Also Read: PLS, MIN, AKE: 3 ASX lithium shares to watch out for in June 2022