- TG Metals (ASX:TG6) was worth 10 cents in late October and was worth more than $1 less than a fortnight later
- The stock has now seen a drop of 40 per cent today on the bourse
- The result appears to be lithium drill results that haven’t won the hearts and minds of shareholders
- One-week returns are now down more than 40 per cent
- TG6 shares last traded at 44 cents
TG Metals (ASX:TG6) has posted high-grade lithium hits – but its shares were down almost 40 per cent at around lunchtime trade AEDT today.
The stock was worth 10 cents in late October and was worth $1.10 by early November.
A steep rocketing of bullish enthusiasm is now falling back down to earth, apparently on the back of drilling results that aren’t quite as good as what people would have liked.
Just take a look at its one-year chart.
These drill results come from TG6’s Lake Johnston project.
“Thin and deep”
Some users on HotCopper were quick to point out that the thickness of intercepts highlighted today – as well as associated grades and depth – may be putting shareholders off.
TG Metals has flagged one 19-metre intersection at 1.52 per cent lithium from 206 metres depth.
Within this 19-metre core was one 2-metre pocket at 2.53 per cent lithium.
The second drill hit highlighted was only 4.05 metres thick at 1.74 per cent lithium from 132 metres depth – including a 0.95-metre pocket at 2.29 per cent lithium.
The largest intercept over two per cent lithium was only three metres thick from a depth of 248 metres. The company also reported a best-ever hit of 2.88 per cent lithium, though, this was not included on the results table posted today.
High volume turnover
It appears likely lower grades and smaller intersections taken from depths over 200 metres may be losing the stock shareholders this morning.
Underpinning its lacklustre start to Tuesday trading hours is TG Metals’ unusual volume of shares that have traded today.
As of 11:10 am AEDT, the four-week average daily share turnover volume is 1.7 million shares.
Today, the stock has seen 6.074 million shares traded – with most of those clearly on the sell side.
One-week returns are now down 41.18 per cent and one-month returns are down 49.44 per cent.
Today’s steep 38 per cent drop comes after a hard run starting October 26 which saw the share price rocket from being worth 10 cents to $1.10 by November 8.
With that said, TG Metals’ YTD performance is still up 328.57 per cent – but clearly, the danger of skyrocketing gains is plummeting falls.
TG6 shares last traded at 44 cents.