S&P/ASX 200 Index (ASX: XJO) stocks, taken together, moved higher in June.
In afternoon trade on Friday, with just hours left before the ASX closes shop for the month, the benchmark index is up 1.4% since the closing bell rang on 31 May.
But not all companies joined in the move higher.
Below we look at three ASX 200 stocks that tumbled as much as 23% over the month almost past.
We note that all three have a common factor, and we ponder whether after June's big falls they may now present good value.
Three ASX 200 stocks falling hard in June
The third worst performer on our list is ASX 200 lithium stock Pilbara Minerals Ltd (ASX: PLS).
The Pilbara Minerals share price is down 3.1% in intraday trade today at $3.16 a share. The lithium miner closed out May trading at $3.79 a share, which sees the stock down 16.6% in June.
The only price-sensitive news out from the miner came on 21 June.
Pilbara updated the market on its pre-feasibility study (PFS) for expanded production at its Pilgangoora project. The PFS revealed that production capacity at Pilgangoora could increase to more than two million tonnes a year.
But the ASX 200 stock closed the day down 2.8% on the news. That may be due to the estimated $1.2 billion price tag for a new whole of ore flotation plant required for the expansion.
Moving on to the second worst ASX 200 stock performer on our list for June, we have lithium miner IGO Ltd (ASX: IGO).
The IGO share price is down 1.2% in intraday trade on Friday at $5.80. The stock closed out May trading for $6.99, which sees the IGO share price down 17.0% over the month.
The only price-sensitive news announced from the miner in June involved gold, not lithium.
On 21 June, IGO reported on the legal action being taken by South32 Ltd (ASX: S32) regarding disputed royalty payments from the Tropicana Gold Mine, located in Western Australia. IGO denies it has any royalty obligations to South32.
Which brings us to the worst ASX 200 stock performer on our list for June, Mineral Resources Ltd (ASX: MIN).
The diversified mining services company has mining operations primarily focused on lithium and iron ore. Mineral Resources holds a direct interest in two Western Australian lithium mines, Mount Marion and Wodgina.
Did you catch the common thread yet?
The Mineral Resources share price is down 0.7% in intraday trade today at $55.53. Shares closed out May trading for $71.66 apiece, which sees the mining stock down 22.5% for the month.
Atop being pressured by tumbling lithium prices, as with the two ASX 200 stocks above, Mineral Resources also didn't get any help from the 9% retrace in the iron ore price in June.
On 20 June, the miner reported it would stop shipping iron ore from its Yilgarn Hub iron ore operation in Western Australia. With management determining the project is no longer financially viable, shipments will cease by the end of the year. The Mineral Resources share price closed down 1.0% on the day.
Time to buy the dip?
After June's big falls for these ASX 200 stocks, it may be tempting to go bargain hunting.
But buyer beware.
I'd steer away from both IGO and Pilbara for the time being, with lithium prices widely forecast for more falls ahead.
June saw the price of the battery-critical metal tumble some 15%, currently trading near three-year lows of US$12,000 a tonne.
And the analysts at Citi expect the lithium price has further to fall before finding support. Pointing to building global inventories, the broker believes we "should see lithium prices fall another 15% to 20% to $US10,000 a tonne" over the next three to six months.
As for Mineral Resources, the ASX 200 stock has significant revenue potential outside of the lithium space. And with that diversity in mind, I'm in line to agree with the analysts at Bell Potter and say June's big share price retrace could present a good 'buy the dip' opportunity.
Bell Potter recently reaffirmed its buy rating on Mineral Resources shares with an $84.00 price target. That's some 50% above current levels.
According to the broker:
Mineral Resources completes everything from engineering, to construction, to all aspects of operations in-house.
Our buy view is underpinned by MIN's earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream.
