The Core Lithium Ltd (ASX: CXO) share price is enjoying a welcome boost today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed flat yesterday at 38 cents. In morning trade on Wednesday, shares are swapping hands for 39.8 cents apiece, up 4.61%.
This comes despite a 0.84% decline in the ASX 200 and selling pressure on many of its lithium-producing peers.
There could be some bargain hunting going on with Core Lithium, with shares in the lithium miner down 76% over the past 12 months.
Shareholders will be breathing a bit easier following today's lift, after seeing the Core Lithium share price plumb new 52-week lows no less than 11 times since 24 July.
Image source: Getty Images
Why has the Core Lithium share price been hitting new lows?
Monday saw the ASX 200 lithium stock close down 1.3%, continuing a lengthy string of losses and marking another fresh 52-week low.
Shares closed flat yesterday, leaving shares at lows not seen in more than a year.
August was a horror month for shareholders, with the stock closing the month down 36%.
Selling was spurred by a range of factors, including an increase in the miner's production costs guidance, coupled with disappointing production forecasts at its Finniss Lithium Project.
A $120 million capital raising in August also saw investors rushing for the exits.
That was largely due to the massive 26% discount that the new shares were issued for compared to the closing price on the day prior to the cap-raise announcement. Management issued the new shares for 40 cents apiece.
That's now 0.5% higher than the current Core Lithium share price, which could be helping lift the lithium stock today.
