Why is Core Lithium (ASX:CXO) garnering investors’ attention today?

3 min read | May 09, 2022 07:10 PM AEST | By Ritwika

Why is Core Lithium (ASX:CXO) garnering investors’ attention today? — Image source: © Malpetr | Megapixl.com

Highlights

Core Lithium was traded heavily on the ASX today despite the company not releasing a new update.

The trading volume could be an impact of CXO’s previous updates.

Core Lithium closed in red today as the ASX 200 Materials sector closed lower today.

The share price of Core Lithium Ltd (ASX:CXO) closed 7.661% lower at AU$1.145 per share on the ASX today (9 May). Approximately 22 million shares of Core Lithium were traded during the entire trading session on the ASX today.

The share price of Core Lithium has gained over 377% on the ASX over the past 12 months. On the other hand, Core Lithium’s year-to-date share price also gained over 81% on the ASX today (9 May).

Why were Core Lithium shares heavily traded today?

It is difficult to explain the reason why Core Lithium’s shares were traded heavily on the ASX today as there is no recent update from the company. However, the shares closed in red as the S&P/ASX 200 Materials sector closed 2.13% lower today.

Nonetheless, the ASX-listed lithium producing company has performed exceptionally well in the past one year amidst COVID-19. Its share price gain must have been driven by the rising demands for lithium for the development of electronic vehicles.

Furthermore, on 3 May 2022, the company announced that one of its underground mines had secured an environmental permit under the NT Environmental Protection Act 2019.

Read more: Core Lithium (ASX:CXO) shares end 8% higher today, here's why

After receiving the environmental permit, Core Lithium has successfully completed the environmental impact assessment process for that underground mine. The company’s next target is to submit a mining management plan for reviewing to the Department of Industry, Tourism and Trade.

Core’s mining management plan is going to be aligned with the NT Mining Management Act 2001 and the NT Environmental Protection Authority’s recommendations for the underground mine.

The company also informed about signing a crushing services contract with CSI Mining service on 2 May 2022. The contract is supposed to enable the company to get control over the Finniss Lithium Project in the Northern Territory.

Therefore, we assume that the above-mentioned updates from the company could be the reason behind Core Lithium’s heavy trading volume on the ASX today.

About Core Lithium:

Core Lithium Ltd is an ASX-listed mineral explorer with a market capitalization of AU$2.12 billion. The company is popularly known for owning underground mines in the Northern Territory and South Australia at the Finniss Lithium Project.

The company is primarily involved in the mining, exploration and production of Lithium, Uranium, and Copper. Additionally, Core Lithium also owns zinc development projects, including the Yerelina Projects in northern South Australia.

Apart from these, the company also owns two silver and lead projects, namely- Blueys and Inkheart.

Read more: Why is AVZ Minerals (ASX:AVZ) in news today?

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