- Core Lithium shares have been a tad volatile today. During early hours of trading, the stock was trading a bit strong while later, it changed its momentum downwards.
- Shares of Core Lithium were not in line with its benchmark index, ASX200 Materials, today.
- Madeleine King, Minister for Resources and Minister for Northern Australia, shared that the lithium export earnings are expected to more than double in 2023-2024.
Shares of Australian materials company, Core Lithium Ltd (ASX:CXO) were in buzzing in green zone at 2:15 PM AEST, and after that, it buzzed into the red territory. At 3:11 PM AEST, the shares were spotted trading 0.32% down at AU$0.93 apiece. During the early morning trading hours, the shares were up at AU$0.98.
At 3:44 PM AEST, the benchmark index, ASX200 Materials (XMJ) index was up by 0.46% to 15,442.80. Worth mentioning here is, that the materials sector was quite volatile today. In the morning, it was as high as 15,547; later during the day, it dipped to as low as 15,349.80.
ASX200 (XJO) was up by 1.05% to 6,608.20.
The reason behind Core Lithium today's share price movement
The company made no significant announcement today. The stock did not follow its benchmark index price movement.
Worth mentioning here is that shares of Core Lithium were performing better than its peers today. Allkem Limited (ASX:AKE) was down by 1.56% to AU$10.09 per share at 3:34 PM AEST. Similarly, Sayona Mining Limited (ASX:SYA) dropped by circa 2% to AU$0.15 apiece. Pilbara Minerals Limited (ASX:PLS) recorded a fall of 0.22% around the same time.
Historical share performance of Core Lithium
Including today's fall, in last five trading sessions, the share price of Core Lithium diminished by more than 10%, and in one month, the share price tumbled by 22%. In the past six months, the shares surged by 45%, and one year gain is around 287.50%.
When looking at the past five years' performance, the shares skyrocketed by 1,062.50%. Since its listing on the ASX on 11 February 2011, the share price rose by 416.67%.
A potential reason behind Core Lithium's performance
Core Lithium is a lithium explorer, and the share prices are affected significantly by lithium prices.
Lithium carbonate dominates the lithium salt market and surged to a record-high of 500,000 yuan/tonne in March 2022. After that, the prices have been revolving around it. As of 1 July 2022, lithium was priced at 475,500.00 yuan/tonne. In a month, the price rose by 1.49%, and in a year, the prices surged by 434.27%.
The 434.27% surge in lithium prices might be the reason behind the 287% surge in Core Lithium share price.
Australian resources and energy sector have strong prospects
Image source: © Photoshtorm777 | Megapixl.com
The Minister for Resources and Minister for Northern Australia, Madeleine King, shared, via a press release that, the Australian resources and energy sector is experiencing a strong international demand as nations are moving away from Russia and looking for an alternative supply source.
The government release highlighted those commodities demanded by batteries and electric vehicle manufacturing are also experiencing solid growth in international demand. The lithium export value is expected to more than double by 2023-2024.
The release mentioned that lithium export earnings are expected to reach AU$9.4 billion in 2023-24.