The Australian Strategic Material Ltd (ASX: ASM) share price has ended its miraculous run.
Shares in the emerging metals producer are trading more than 8% lower today.
Let's take a look at how the Australian Strategic share price has performed and why investors are selling today.
Image source: Getty Images
Why is the Australian Strategic share price down today?
Australian Strategic has not released any price-sensitive news to explain today's bearish price action.
However, shares in the company have been on a miraculous run recently. Shares in the Australian Strategic surged more than 60% for the month of June. As a result, many investors could be taking profits in the new month.
What's been fueling the Australian Strategic share price?
Australian Strategic is an integrated materials business and emerging producer of critical metals.
The company owns the Dubbo project in NSW which has a proven long-term resource of rare earths. In addition, Australian Strategic has a joint venture with South Korea's Ziron Tech to pilot the production of hafnium and zirconium. Dubbed 'The Korean Metals Plan', the company aims to produce and supply titanium and key rare earth metal alloys to the South Korean market.
For the month of June, Australian Strategic hasn't actually released any price-sensitive news.
Therefore, there are many factors that could have fuelled shares in the company to go on a miraculous run.
In general, the overall renewables sector has performed strongly which could explain the performance of shares in Australian Strategic.
In an investor presentation earlier this year, the company noted that its Dubbo project was targeting zero carbon emissions.
Thanks to a bumper performance in June, the Australian Strategic share price has recovered to be around 8% higher for 2021.
At the time of writing, shares in the company are trading at their intraday low of around $7.15.
