Why has the Vulcan share price tumbled 25% in a month?

It’s been a rough month for the lithium explorer and developer’s stock.

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Key points

  • The Vulcan share price has dropped 25% over the last month to close at $7.15 on Wednesday
  • That's despite the only news out of the company – its quarterly report – being relatively positive
  • Additionally, brokers are bullish on the stock, with one slapping it with a $23 price target

It’s been a rough 30 days for the Vulcan Energy Resources Ltd (ASX: VUL) share price.

The stock has slumped 25% in a single month despite seemingly good news being released from the company during that time.

At market close on Wednesday, the Vulcan share price is $7.15, 0.28% higher than its previous close.

For context, the All Ordinaries Index (ASX: XAO) also finished up 0.26% today. It has slipped 6% over the last month.

Let’s take a look at what’s been going on with lithium and renewable energy explorer and developer lately.

What’s driving the Vulcan share price 25% lower?

The Vulcan share price has been trending downhill lately despite many brokers being bullish on the stock.

Analysts believe the stock could more than double, with some slapping it with price targets of $23 last month, as reported by The Motley Fool Australia’s Zach Bristow.

Canaccord Genuity set that price target. Meanwhile, Alster Research and Berenberg expect the company’s shares to reach $20 and $14.20 respectively.

The former flagged that the company could potentially benefit from the conflict in Ukraine, which has led to sanctions on Russian energy imports.

Additionally, renewed focus on Vulcan’s future profitability might have helped bolster its share price last week, as my colleague Mitchell Lawler reported.

Finally, the only price-sensitive news from the company over the last month saw its share price tumble 2.8%.

Vulcan Energy released its quarterly cash flow and activities reports on 28 April.

Within them, the company outlined progress made towards production over the three months ended 31 March.

It received 2.2 million euros of receipts over the quarter and spent 18.9 million euros.

The company expects to finalise its definitive feasibility study in the second half of 2022 and begin lithium production in 2024.

The Vulcan share price is currently 31% lower than it was at the start of 2022. It has also fallen 7% since this time last year.

Motley Fool contributor Brooke Cooper has positions in Vulcan Energy Resources Limited. 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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