The Lake Resources N.L. (ASX: LKE) share price is in the red again on Monday.
Shares in lithium stock closed on Friday trading for 18 cents. At time of writing, shares are swapping hands for 17.5 cents apiece, down 2.8%.
For some context, the All Ordinaries Index (ASX: XAO) is down 0.7% at this same time.
So, why is the Lake Resources share price underperforming the benchmark today?
Why is the Lake Resources share price losing ground today?
It's been a rough 12 months for Lake Resources shareholders.
And today is no exception.
Atop the broader market sell-off, the ASX lithium stock is likely coming under additional pressure following today's S&P Dow Jones Indices quarterly rebalance.
With the Lake Resources share price down a painful 84% over 12 months, and down 65% just over the past six months, the company's market cap has shrunk to approximately $252 million.
That led to the stock being removed from the S&P/ASX 200 Index (ASX: XJO) in the latest rebalance, effective this morning.
While that won't impact the miner's operations directly, it does mean its shares won't be included in any index tracking funds intended to mirror the ASX 200.
It also means that some fund managers, restricted to investing in ASX 200 companies, will be selling their holdings and no longer be covering Lake Resources.
What's been going on with the ASX lithium miner?
On 1 April 2022, the Lake Resources share price closed the day at $2.31. The stock had been rocketing amid enthusiasm over its Kachi lithium brine project, located in Argentina.
But since then, things haven't gone quite to plan.
Among the tailwinds, management has flagged higher-than-expected costs with lower-than-expected production.
Guidance for lithium carbonate production was recently cut to 25,000 tonnes per year in 2027, down from the prior guidance of 50,000 tonnes per year by 2024.
As for the cost blowout pressuring the Lake Resources share price, Motley Fool analyst James Mickleboro noted earlier this month, "The latter [costs] are so high that it really calls into question whether the Kachi project is even viable."
