Why Vulcan Energy (ASX:VUL) is trading lower today

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Why Vulcan Energy (ASX:VUL) is trading lower today

ASX:VUL, Vulcan Energy Limited, ASX, energy stocks
Image source: © Rastudio | Megapixl.com

Highlights

  • Vulcan Energy’s share price is at its three-month low on ASX today.
  • VUL shares are under lithium sector downtrend.
  • However, Vulcan has received an Italian research permit, in line with its Zero Carbon Lithium™ business.

Shares of Vulcan Energy Resources Limited’s (ASX:VUL) continued its free fall on the ASX today. VUL’s share price, has taken a 3.71% dip witnessing share sell-off on ASX today. Continuing losses, VUL shares have reached AU$9.070 each, as at 11:06 AM AEDT, being its lowest in last three months.

What’s making VUL shares dip further on ASX today?

  • Vulcan seeks to become world’s first integrated lithium and renewable energy producer, having a net zero carbon footprint.
  • As per its today’s ASX release, Vulcan’s subsidiary-Vulcan Energy Italy Pty Ltd has been granted a new Research Permit in Italy. The ‘Cesano’ permit includes an area contains high average lithium-in-brine.
  • However, today Lithium stocks listed on ASX, including Pilbara Minerals (ASX:PLS), Liontown Resources (ASX:LTR), are all in red.

How is Vulcan progressing with its’ Cesano permit?

  • Vulcan’s in-house, German geological team is collaborating with few Italian geologists and other local stakeholders to collect historical data for assessment of the lithium content and project development potential.
  • The Cesano Project if successful, shall become a strategic and sustainable resource for Vulcan, to serve the European battery and electric vehicle market. The European markets are said to be the fastest growing ones globally.

Bottom line-

The sectoral slump seems to be weighing down on VUL shares today. Despite a positive development, VUL shares have lost their shine, further extending shareholder’s losses.

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