Home / Sector / Resources Shares / Why the AVZ Minerals (ASX:AVZ) share price is plunging 10% today

Why the AVZ Minerals (ASX:AVZ) share price is plunging 10% today

AVZ Minerals seems to be going through a sell off after its share price boomed yesterday.

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Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
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The AVZ Minerals Ltd (ASX: AVZ) share price is slipping today, despite no news having been released by the company.

However, yesterday, AVZ Minerals announced it has received positive assay results from the Carriere de l'Este deposit, found within its Manono Lithium and Tin Project.

The AVZ Minerals share price increased by 8.51% yesterday. It has since handed back its gains.

So far today, the AVZ Minerals share price has fallen 9.62% to trade at 23.5 cents.  

Additionally, the company's shares are seemingly experiencing a sell-off. As of the time of writing, approximately 12.8 million of AVZ Mineral's shares have been traded today. For comparison, over the past 4 weeks, an average day saw around 13.7 million of the company's securities swapping hands.

Let's take a closer look at the latest news from AVZ Minerals.

white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

The latest news from AVZ Minerals

The AVZ Minerals share price's rollercoaster began when the company announced drilling at the Carriere de l'Este deposit has confirmed more high-grade lithium and tin mineralisation.

The Manono Project, located in the Democratic Republic of Congo, houses the deposit. AVZ Minerals holds 60% of the Manono Project.

AVZ Minerals has now confirmed the Carriere de l'Este deposit to be 1.2 kilometres long and open at both ends.

Major high-grade intersections included:

  • 12.05 metres at 2.41% lithium oxide and 735 parts per million of tin
  • 21.09 metres at 2.1% lithium oxide and 943 parts per million of tin
  • 16 metres at 2.49% lithium oxide and 571 parts per million of tin

The results will be used to target more areas at the project where AVZ Minerals expects to find lithium oxide at higher grades and shallow depths.

The news saw the AVZ Minerals share price reach its highest point since 2018 yesterday. It reached 27 cents in intraday trade.

AVZ Minerals share price snapshot

Despite today's dip, AVZ Minerals shares are well and truly in the green on the ASX.

Right now, it's 38% higher than it was at the start of 2021. It has also gained a whopping 235% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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