Latin Resources share price crashes 30% in under 3 weeks

This lithium share is taking a beating this month. But why?

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published September 21, 2023 4:33 pm AEST

The Latin Resources Ltd (ASX: LRS) share price was under pressure again on Thursday.

The lithium explorer's shares have just ended the day 7% lower at 26.5 cents.

This means the ASX lithium share has lost 30% of its value in September.

A man holds his head in his hands after seeing bad news on his laptop screen. — Image source: Getty Images

What's going on with the Latin Resources share price?

Investors have been selling down the company's shares this month despite there being no news out of it.

However, it is worth highlighting that the Latin Resources share price isn't alone in its sizeable decline.

A number of other ASX lithium shares have been hit very hard in September. This includes Argosy Minerals Limited (ASX: AGY), Lake Resources N.L. (ASX: LKE), Sayona Mining Ltd (ASX: SYA), and even Pilbara Minerals Ltd (ASX: PLS).

Investors appear concerned by falling lithium prices and rising battery materials inventories. It was because of the latter that analysts at Morgan Stanley downgraded IGO Ltd (ASX: IGO) shares to the equivalent of a sell rating this morning.

But if you were hoping the pain was over for lithium prices, then you won't want to hear what Goldman Sachs is saying. It is forecasting the following compared to current spot and January prices:

Lithium carbonate (per tonne)
- January 2023: US$66,750
- Current spot: US$25,032
- 2023: US$38,794
- 2024: US$15,331
- 2025: US$11,000
- 2026: US$16,883

Lithium spodumene 6% (per tonne)
- January 2023: US$5,990
- Current spot: US$3,010
- 2023: US$4,341
- 2024: US$1,763
- 2025: US$800
- 2026: US$1,126

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