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Why did the Lake Resources share price tumble 7% today?

What went wrong for Lake Resources today?

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Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
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Key points
  • The Lake Resources share price shed nearly 7% today 
  • The company announced the resignation of the joint company secretary 
  • This ASX lithium miner's share price has rocketed nearly 463% in a year 

The Lake Resources N.L. (ASX: LKE) share price struggled on the ASX today.

The lithium explorer's shares fell by 6.68% to $1.745. In contrast, the S&P/ASX 200 Index (ASX: XJO) slid 0.42% in today's trade.

Let's take a look at what is happening at Lake Resources.

A male executive worker wearing glasses and a blue collared shirt looks at his laptop screen with a concerned look on his face and his hand to his forehead.

Image source: Getty Images

Lithium explorer falls

The Lake Resources share price has sunk to its lowest level since late March today. For perspective, the S&P/ASX 200 Materials (ASX: XMJ) index fell by more than 1% today while the shares of ASX lithium miner Core Lithium (ASX: CXO) also closed 4.53% lower.

In today's news, Lake advised the market company secretary Garry Gill has resigned as joint company secretary. Peter Neilsen will remain in his role as company secretary and chief financial officer.

Commenting on the news, the company said:

The board expresses its appreciation to Mr Gill for his services to the company and wishes him well for the future.

Lake Resources is exploring lithium from multiple projects including the flagship Kachi Project in Argentina. Lake aims to produce 100,000 tonnes of lithium by 2030. Lithium is a critical component of Electric Vehicle (EV) batteries.

The lithium carbonate price has fallen 6.85% in a month to 462,500 yuan per tonne, Trading Economics data shows.

Lake Resources share price snapshot

The Lake Resources share price has soared 463% in the past 12 months and is up 73% this year to date.

In contrast, the benchmark index has returned about 4% in the past year.

Lake Resources has a market capitalisation of about $2.3 billion based on the current share price.

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 Scott Phillips.

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