The Galan Lithium Ltd (ASX: GLN) share price is crashing after the ASX miner posted its latest quarterly update.
Shares in the lithium hopeful dived 4.2% to $1.25 during lunch time trade, although its peers aren't doing much better.
The Orocobre Limited (ASX: ORE) share price lost 0.1% to $9.55, while the Pilbara Minerals Ltd (ASX: PLS) share price shed 2% to $2.22 at the time of writing.
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Galan Lithium share price in cooldown
It's probably more good ol' profit taking that's driving the sell-off more than anything sinister as ASX lithium shares have surged over the past year.
For example, the Galan Lithium share price is sitting on an 850% increase in the past 12-months. Management will need more than a positive spin on the quarterly to drive the shares higher in the near-term.
At least Galan Lithium didn't let the rally go to waste. It raised $50 million via an institutional placement which boosted its cash holdings to just over $42 million.
Cash to fund lithium projects
That should last it a while as it looks to prove up its Argentinian projects. The miner's focus in the latest quarter was on the ongoing feasibility works and next round of drilling at its high-grade Hombre Muerto West ("HMW") project.
It also reported that it is moving closer to awarding the engineering component of the feasibility studies to an engineering company. It's currently in discussions with three international firms.
Meanwhile, Galan Lithium is also advancing its scoping studies at the Candelas project. Both projects are in the Hombre Muerto West salt flat in the South American Lithium Triangle.
Galan Lithium owns 100% of these projects and holds an 80% stake in the Greenbushes South Lithium project. The balance is held by its joint-venture partner Lithium Australia NL (ASX: LIT).
Hot commodity
Lithium has been the hot commodity over the past year. It's the main input into batteries, which are used in electric vehicles (EVs).
Some experts believe supply will struggle to keep up with demand due to the growing popularity of EVs. The decarbonisation of the world will also add to demand for batteries to store power from sustainable energy sources.
Against this background, the junior explorer has outrun its bigger peers. That's not surprising as it tends to be the more speculative ASX mining shares that do better when commodities are running hot.
Galan Lithium share price tops its bigger peers
The Pilbara Minerals share price powered up nearly 500% over the past year but that's still 392% behind Galan Lithium's share price run.
In case you are wondering, the Orocobre share price chalked up a gain of 255%, while the Lithium Australia share price added 180% over the period.
