The Lake Resources share price plummeted 49% in June. Here's why

It was a month to forget for the ASX lithium share. Here are the details.

Key points
  • Last month was a shocker for the Lake Resources share price. It tumbled 49% to close June at 79 cents
  • Though, it wasn't alone in its suffering. ASX lithium shares experienced a major sell-off last month
  • Unfortunately, the company's addition to the ASX 200, the appointment of finance institutions as coordinators for the Kachi Lithium Project, and a pivot towards North American and Asian lithium supply chains wasn't enough to stop its stock from tumbling

The Lake Resources NL (ASX: LKE) share price lost nearly half its value last month. The now-S&P/ASX 200 Index (ASX: XJO) lithium stock suffered alongside most of its peers through a June sell-off event.

At the end of June, the Lake Resources share price was 79 cents, 49% lower than it was at the final close of May. For context, the ASX 200 fell nearly 9% last month.

Let's take a closer look at what went wrong for the ASX 200 newbie.

a person holds their head in their hands as they slump forward over a laptop computer which features a thick red downward arrow zigzagging downwards across the screen.

Image source: Getty Images

What weighed on the Lake Resources share price in June?

The Lake Resources share price suffered through an ultimately disappointing rollercoaster of a month in June. It all started with a major lithium sell-off.

ASX lithium shares tumbled on 1 June amid a bearish note out of Goldman Sachs, an Argentinian export reference price, and reports a major electric vehicle manufacturer was considering producing its own lithium.

Lake Resources' stock slumped nearly 13% that day. While its worst falls were still to come, there was plenty of good news from Lake Resources over the rest of June.

It was added to the ASX 200 and appointed two leading finance institutions as joint coordinators for its Kachi Lithium Project.

Additionally, the company told the market of its shift towards North American and Asian lithium supply chains.

However, it also announced its North America managing director Steve Promnitz had stepped down, seemingly without cause or notice.

In the aftermath, the company's chair Stu Crow stepped up to the role of executive chair for six months. Crow will oversee the appointment of a new CEO and board members, and the establishment of US offices.

Despite last month's struggles, the Lake Resources share price is still trading in the long-term green. It has gained 148% since this time last year.

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 positions in and has recommended Goldman Sachs. 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.

More on Share Fallers

Codan share price A dismayed kid dressed as a scientist stands with his back to a rocket crashed into the ground
Share Fallers

Xero shares crash to a 7-year low after a brutal sell-off

The decline has wiped out years of share price gains.

Read more »

Two miners at a mine site on their tablets, with mining machinery behind them.
Share Fallers

Why has the Mineral Resources share price fallen 12% this week?

It’s been another tough week for Mineral Resources shareholders.

Read more »

A man holds his hand to his chin with a furrowed brow, making an expression of puzzlement or confusion.
Share Fallers

Top 3 ASX 200 shares now below their 200-day moving average

Are these businesses still a buy?

Read more »

A young man clasps his hand to his head with a pained expression on his face and a laptop in front of him.
Share Fallers

What are the most shorted ASX shares on the market right now?

Two names, two opposite bear cases.

Read more »

An arrow crashes through the ground as a businessman watches on.
Share Fallers

Warning: Corporate Travel shares have crashed 80%. What on earth just happened?

An 80% crash has left investors asking what went so wrong.

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
Share Fallers

The five worst-performing ASX 200 shares in August unmasked

Investors sent these five ASX shares crashing 17% to 23% in August. But why?

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
Share Fallers

Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week

ASX investors punished Lendlease, Megaport, and JB Hi-Fi this week. But why?

Read more »

Woman checking out new laptops.
Consumer Staples & Discretionary Shares

Down 14% today: Are JB Hi-Fi shares now a bargain-bin buy?

Could JB's plunge mean a bargain buy?

Read more »