Why has the Core Lithium share price fallen 26% in a month?

It was a tough end to the year for the ASX lithium share.

| More on:
A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

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

  • Core Lithium shares have shed nearly 26% in a month 
  • Goldman Sachs put out a bearish note on the company during the month, while Macquarie was positive on Core Lithium 
  • Core Lithium loaded the first shipment of lithium oxide direct shipping ore at Darwin Port for export to China on Friday

The Core Lithium Ltd (ASX: CXO) share price has tumbled over the past month.

Core Lithium shares have descended nearly 26% since market close on 2 December and are currently fetching $1.02. For perspective, the S&P/ASX 200 (ASX: XJO) has shed 4% in the last month.

So what has been going on with the Core Lithium lately?

What's impacted Core Lithium in December?

Core Lithium is not the only ASX lithium share that has fallen in the last month. Pilbara Minerals Ltd (ASX: PLS) shares have slid 26% in a month, while Sayona Mining Ltd (ASX: SYA) shares have lost 19%.

Core Lithium shares plunged nearly 30% between market close on 2 December and 28 December before finishing the year on a high.

A bearish note out of Goldman Sachs may have weighed on the company's shares in early December. The broker put a sell rating on Core Lithium with a $1 price target. The commodity team at Goldman predicted lithium prices would start to fall in the second half of 2023. Analysts said:

Our commodity team now expect lithium prices through 1H23 to reflect the near-term tightness and lagging spodumene contract price pass-through before declining over 2H23.

Electric vehicle demand concerns, the performance of US lithium shares, and the lithium price also weighed on ASX lithium shares in December.

The lithium carbonate price descended 15.6% from CNY 562,500 on 1 December to CNY 474,500 on 30 December.

On the US market, Livent Corp (NYSE: LTHM) shares have shed 24% in the last month, while Sociedad Quimica y Minera de Chile (NYSE: SQM) shares have lost 16%.

In positive news for Core Lithium in December, the team at Macquarie lifted its outlook on the Core Lithium share price to outperform with a $1.30 price target on the share price. This implies a 28% upside based on the current share price.

Macquarie is optimistic about the company's ability to generate bumper free cash flow in the 2024 and 2025 financial years.

Core Lithium loaded the first shipment of 1.4% lithium oxide direct shipping ore from the Finniss mine on December 30. The ship containing 15,000 dmt of lithium oxide is bound for China from Darwin. Core Lithium shares soared nearly 6% on this day.

Commenting on this news, CEO Gareth Manderson said:

Core has made good progress during 2022 to transition from a mine developer to lithium producer. In 2023 we will continue this transition and the work required to build a quality operating business."

Core Lithium share price snapshot

The Core Lithium share price has soared 73% in the past 52 weeks.

Created with Highcharts 11.4.3Core Lithium PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Core Lithium has a market capitalisation of nearly $1.9 billion based on the current share price.

Should you invest $1,000 in Core Lithium Ltd right now?

Before you buy Core Lithium Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Core Lithium Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Monica O'Shea 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 Resources Shares

Wlorker on a laptop on top of solar panels.
Resources Shares

Rio Tinto shares in the green amid $2 billion renewable news

Rio Tinto has entered into a 20-year renewable energy agreement.

Read more »

Female miner standing smiling in a mine.
Resources Shares

Guess which ASX All Ords silver stock just rocketed 11% on 'highly prospective' project news

The ASX All Ords silver miner is racing higher on Thursday. Let’s find out why.

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background.
Resources Shares

Are BHP shares a good investment right now?

After slipping 8% in a year, should I buy BHP shares today?

Read more »

Miner on his tablet next to a mine site.
Resources Shares

Why Rio Tinto shares are making big news today

Why is everyone talking about Rio Tinto shares on Wednesday?

Read more »

Miner looking at a tablet.
Resources Shares

Is the Fortescue Metals Group share price in the buy zone?

The miner is down nearly 40% in the past year.

Read more »

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.
Resources Shares

How Rio Tinto and BHP shares can beat a plunging iron ore price

BHP and Rio Tinto continue to deliver multi-billion-dollar profits.

Read more »

Miner looking at a tablet.
Resources Shares

3 reasons why this fund manager thinks Mineral Resources shares are 'incredibly undervalued'

An expert believes this is an opportunity worth digging into.

Read more »

A woman standing on the street looks through binoculars.
Resources Shares

Here's the latest earnings forecast out to 2029 for Fortescue shares

How much could profit drop in the coming years?

Read more »