It's another horror day for the Core Lithium Ltd (ASX: CXO) share price this Monday. Core Lithium shares ended last week at 23 cents each. But so far today, the ASX lithium stock has tanked by a horrid 18.7% and is down to just 18.5 cents a share.
Investors probably haven't even recovered from the awful week Core Lithium shares had last week. It was only last Wednesday that this lithium share was asking for around 27 cents a share.
But after an 11.54% during Friday's session, the company has now shed more than 31% of its value since Wednesday. It's also lost almost 50% of its value since 20 December.
So what on earth is going on with this lithium stock that has resulted in investors singling it out for such severe punishment?
Image source: Getty Images
Why is the Core Lithium share price tanking 19% today?
Well, there's been no fresh news or announcements out of Core Lithium this Monday. So it looks like the most believable explanation for this heavy loss is a continuation of the negative sentiment we saw at the end of last week for the company. Friday's falls were sparked by an announcement from Core Lithium, which we covered at the time.
This revealed that the company has decided to suspend lithium mining operations at its Grants Open Pit.
Late last month, Core warned investors it was considering taking this path due to a massive slump in lithium spodumene prices over 2023, particularly over the back half of the year.
Friday's announcement confirmed this suspension. Core Lithium will still process existing ore stockpiles at the site but won't resume mining until "market conditions improve".
Investors have clearly not taken this news well, judging by the reactions to the initial announcement last month, as well as the update on Friday.
Shareholders can probably conclude with reasonable surety that today's moves are an extension of this disappointment.
No doubt, investors will be hoping that Core Lithium shares will turn around soon. But we'll have to wait and see what's next for this lithium stock.
