Why is the Neometals (ASX:NMT) share price sinking today?

Here's what might be weighing on Neometals' stock.

The Neometals Ltd (ASX: NMT) share price is tumbling today despite no price-sensitive news having been released by the company.

However, Neometals did release its environmental, social, and governance (ESG) and sustainability report for financial year 2021 today.

The company's stock also isn't alone in its plunge.

At the time of writing, the Neometals share price is $1.10, 3.08% lower than its previous close.

For context, the All Ordinaries Index (ASX: XAO) is down 0.66%, as is the S&P/ASX 200 Index (ASX: XJO).

Let's take a look at what might be going on with the vanadium producer and lithium-ion battery recycler today.

man grimaces next to falling stock graph

Image source: Getty Images

What's weighing on the Neometals share price today?

There's no obvious cause for the Neometals share price's fall on Tuesday.

Though, Neometals hasn't been silent. The company released its non-price sensitive ESG and sustainability report this morning.

Within it, Neometals outlined continued innovation at its Vanadium Recovery Project, its lithium-ion battery recycling leg, and its Barrambie Project, as well as the development of its ELI lithium processing intellectual property.

The company also achieved carbon neutrality during financial year 2021. It did so by offsetting its carbon footprint with native tree planting.

As the report is non-price sensitive, it's unlikely to have weighed on the Neometals share price. However, the broader market's performance might have impacted the stock.

While Neometals doesn't call the S&P/ASX 200 Materials Index (ASX: XMJ) home, many of its peers do. Thus, the sector's movements tend to impact Neometals' shares.

Right now, the ASX 200 Materials Index is down 1.11%. The dip makes it the worst performing ASX 200 sector on Tuesday.

The sector's biggest weights include Resolute Mining Limited (ASX: RSG), Iluka Resources Limited (ASX: ILU), and James Hardy Industries plc (ASX: JHX). Their share prices have fallen 3.33%, 3.01%, and 2.54% respectively.

Despite today's drop, the Neometals share price is still boasting a gain for November. It has increased by 5% since the end of last month. It's also 279% higher than it was at the start of 2021.

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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