Last year was a bloodbath for mining stocks tied to the green energy transition. But with markets rallying in the early part of 2024, ‘green miners’ continue to lag.
Unfortunately, that doesn’t bode well for a sharp turnaround in 2024. Dampening that outlook further is the string of negative news over the last week.
Mining billionaire Andrew Forests’ privately owned Wyloo Metals announced a shutdown of its nickel operations in Western Australia due to falling prices. Lithium giant Albemarle (NYSE: ALB) revealed job cuts and a trimming of its capital expenditure. It also unloaded its stake in Liontown (ASX: LTR) after last years’ failed takeover bid. LTR’s stock price has now plunged more than 44% since the new year.
Even the insiders have lost faith. Pilbara Minerals (ASX: PLS) CEO, Dale Henderson, sold around 1.2 million shares following the company’s latest earnings result.
But to get a handle on what 2024 looks like, we should first clarify why green metal stocks sold down so heavily in 2023.
