What’s clamping down on the Piedmont Lithium share price?

Investors are continuing to punish the lithium developer.

| More on:
a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Piedmont Lithium share price is falling again today, as June's bad run continues into July
  • However, brokers remain constructive on the lithium developer
  • The company this week announced its 25%-owned North American Lithium program plans to start lithium spodumene production by 2023

The Piedmont Lithium Inc (ASX: PLL) share price is in the red on Friday morning, currently down 3.67%. This comes despite no fresh news from the ASX lithium share.

At the time of writing, Piedmont shares are trading at 52.5 cents apiece, bringing losses to around 30% for the year to date. They are also down more than 40% over the past month.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is down 0.93% in early trade on Friday. The two have tracked each other closely in 2022, as seen below.

TradingView Chart

What’s up with the Piedmont Lithium share price?

Despite its performance this year, brokers remain constructive on the Piedmont Lithium share price. The company has buy ratings from 100% of analysts covering it, according to Bloomberg data.

The JP Morgan team likes Piedmont’s four key lithium projects that, once completed, should ensure the company is a “low-cost producer of both spodumene (preferred feedstock for lithium hydroxide) and lithium hydroxide (required for long-range EV batteries)”.

Meanwhile, the company also announced this week that its 25%-owned North American Lithium (NAL) program in Canada plans to commence lithium spodumene production by 2023.

The plant will require significant upgrades to infrastructure to bring it up to speed and ensure maximum capacity, efficiency, and safety.

Piedmont owns the site along with 75% owner Sayona Mining Ltd (ASX: SYA).

Despite the update, investors have punished the Piedmont Lithium share price, sending it to 52-week lows in today’s session.

Meanwhile, the price of lithium remains steady and is still up 434% in the past 12 months, or 1.5% in the past month.

Piedmont Lithium shares have collapsed around 50% during the past year of trade.

Motley Fool contributor Zach Bristow 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 Scott Phillips.

More on Share Fallers

Close up of a sad young Caucasian woman reading about Leigh Creek Energy's declining share price on her phone
Share Fallers

Why Beach, Bendigo and Adelaide Bank, Opthea, and Paradigm shares are sinking

These ASX shares are having a bad start to the week...

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the Electro Optic Systems share price declines today on news the CEO has resigned
Share Fallers

Why Baby Bunting, PointsBet, ResMed, and Suncorp shares are dropping today

These ASX shares are ending the week in the red...

Read more »

a woman looks exhausted and overwhelmed as she slumps forward into her hand while looking at her laptop screen.
Share Fallers

Why AMP, OFX, Rio Tinto, and Telstra shares are dropping

These ASX shares are missing out on the good times today...

Read more »

ASX shares downgrade A young woman with tattoos puts both thumbs down and scrunches her face with the bad news.
Share Fallers

Why A2 Milk, Appen, Boral, and REA shares are dropping today

These ASX shares are having bad days...

Read more »

A couple sit at a desk with tissues and tears in their eyes while they look at a laptop computer screen with a camera set up in the foreground suggesting they are making a video.
Technology Shares

What’s going so wrong for ASX 200 tech shares on Wednesday?

ASX 200 tech shares are leading the market's losses today. What's going on?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the Electro Optic Systems share price declines today on news the CEO has resigned
Share Fallers

Why Block, CBA, Mesoblast, and NAB shares are dropping today

These ASX shares are dropping on Tuesday...

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Alliance, Aurizon, MVP, and Suncorp shares are dropping today

These ASX shares are out of form on Monday...

Read more »

A person plunges into the pool with only their feet visible above the surface, diving through a heart-shaped inflatable ring.
Share Fallers

Here’s why the Medical Developments share price is sinking 17% on Monday

The share has caught sellers attention today.

Read more »