The Mineral Resources Limited (ASX: MIN) share price has been smashed this week. Based on Thursday's closing price of $52.30 per share, shares in the Aussie lithium miner are down 15.2% since last Friday's close.
So, what's causing this ASX 200 resources share to slump right now?
Image source: Getty Images
Why the Mineral Resources share price fell 15% this week
For one thing, Thursday was not a good day for the S&P/ASX 200 Index (ASX: XJO). The benchmark Aussie index closed the day 0.50% lower at 7,464.60 points.
However, the Mineral Resources valuation slump dwarfed that. Shares in the Aussie lithium miner closed down 6.6% on Thursday to continue a strong run of daily losses since last week's earnings results.
Mineral Resources reported a 76% surge in revenues to $3.73 billion while underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 148% to $1.9 billion.
Mineral Resources also bumped its dividend up 175% to $2.75 per share. That means the Mineral Resources share price is now trading on a 5.3% dividend yield. The ASX 200 resources share is also trading at a price to earnings (P/E) ratio of just 7.8 times.
While those headline earnings figures are strong, investors have been selling down in recent days. That has coincided with some broader selling pressure across other lithium shares including Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS).
The Mineral Resources share price is still having a pretty good 2021 by any measure. Shares in the ASX lithium miner are up almost 36% year to date which is more than triple the gains of S&P/ASX 200 Index (ASX: XJO).
Foolish takeaway
Lithium prices haven't plummeted in recent days. However, that hasn't stopped the Mineral Resources share price from plunging lower this week.
Shares in the Aussie lithium miner have been smashed having hit a new all-time high as recently as late July.
