Despite rebounding strongly late in the month, the Core Lithium Ltd (ASX: CXO) share price still recorded another disappointing decline in March.
The lithium developer's shares lost 7.5% of their value during the period to end at 86 cents.
Though, it could have been far worse had it not been for that aforementioned rebound, which was caused by a rival receiving a takeover offer at a significant premium.
For example, at one stage in March, the Core Lithium share price was down to a 52-week low of 73 cents. If it has finished the month there, it would have meant a decline of almost 22% for the period.
Why did the Core Lithium share price tumble in March?
Investors were hitting the sell button in the lithium industry for much of last month after spot prices of the battery making ingredient continued to fall.
This sparked fears that many lithium developers have missed the boat on sky high prices and led to investors questioning their valuations.
Not even a mineral resource update and new sales agreement were enough to stop the Core Lithium share price from falling last month.
The former revealed the more than doubling of the mineral resource estimate at BP33 from 4.37Mt @ 1.53% Li2O to 10.1Mt @ 1.48% Li2O. Whereas the latter confirmed that the company has agreed to an additional sale of spodumene concentrate to long-term customer Sichuan Yahua.
Is this weakness a buying opportunity?
Opinion remains divided on where the Core Lithium share price is heading from here.
Analysts at Macquarie are bullish and have an outperform rating and $1.10 price target on its shares. Whereas over at Citi, its analysts have a sell rating and 75 cents price target on them.
Time will tell which broker makes the right call.
