More than $3b was wiped off the Australian gold sector as investors assumed the whole industry would face the same problems behind Evolution’s big downgrade.
Almost $3.5 billion was wiped off the value of Australia’s big three gold miners on Monday as investors bet that the absenteeism and bad weather that forced Evolution Mining to downgrade gold production would also affect the rest of the sector.
Northern Star shares slumped almost 12 per cent on Monday and investors should get clarity on Tuesday morning when the company provides an update on the Kalgoorlie Superpit.Evolution’s Cowal disclosure triggered a 5.
Even if the company did 5 per cent better than its new 2024 target, it would still fall short of the 880,000 and 950,000 ounce range that it promised for 2024 just 11 months ago.Evolution expressed confidence that Red Lake would still deliver for it, but would just take longer to achieve its potential.Executive chairman Jake Klein had warned shareholders when he paid $US375 million for Red Lake in 2019 that it would take further time and money to turn the operation into a lucrative asset.
Evolution is not the only gold miner to lower investors’ expectations recently; St Barbara lost 28 per cent of its value last week after revealing new permitting delays on the Canadian project that wasNorthern Star has also found it harder than expected to improve production from Alaska’s Pogo gold mine, which it acquired in 2018.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Evolution shares crunched on downgradeEvolution’s four-year growth plan has been downgraded less than a year after launch and adds to recent bad news from gold miners St Barbara and Ramelius.
Read more »
Gold miner in Canada finds mummified 35,000-year-old woolly mammothDiscovery in the Klondike ranks as the most complete mummified mammal found in the Americas
Read more »
'Incredible': 30,000-year-old baby woolly mammoth found in north-west CanadaA near-perfectly mummified baby woolly mammoth — thought to be more than 30,000 years old — has been accidentally unearthed by a gold miner in Yukon, north-west Canada.
Read more »
ERA, Flagstaff drag investors kicking and screaming into $300m raisingThere’s a stink brewing at Rio Tinto-controlled uranium miner Energy Resources of Australia.
Read more »
ERA, Flagstaff drag investors kicking and screaming into $300m raisingThere’s a stink brewing at Rio Tinto-controlled uranium miner Energy Resources of Australia.
Read more »
Understrength Matildas hammered by Spain in 7-0 friendly defeatAn experimental Australia slumped to a 7-0 defeat at the hands of Spain in their heaviest loss in 25 years
Read more »