The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) barely moved yesterday, rising just 13 points to close at 4,314.3. These three stocks all managed to fall by more than 5.5%.
Iluka Resources (ASX: ILU) fell 12.2% to close at $14.01, after reporting that it was reducing production of zircon because the global outlook remains unclear. Production will fall from 500,000 tonnes to 430,000 tonnes, with sales of zircon likely to be 400,000 tonnes. Cost of production is set to rise from A$650 a tonne to A$700 a tonne. The company also announced that capital expenditure was likely to rise from $220m to $260m in 2012.
In this article, back in January 2012, I highlighted lower zircon production and very high capital expenditure as the main reasons why I was steering clear.
Ramelius Resources Limited (ASX: RMS) fell 7% to 47 cents, continuing its slide from a high of over $1.73 in September 2011. This gold miner has seen falling production, with one of its mines, Wattle Dam originally due to close in 2013. It now looks like it will close earlier due to low grade levels, and lower production. Underground mining at Wattle Dam has now ceased and surface drilling commenced in March 2012. The company expects to produce 20,000 ounces of gold in the June 2012 quarter.
For the half year to December 2012, Ramelius reported net profits of $16.1m, a fall of over 50% from the prior corresponding period.
Resolute Mining Limited (ASX: RSG) fell 5.6% to close at $1.53. Another gold miner, with mines in Tanzania, Mali and Australia, Resolute has seen its share price fall from over $2.20 in the last 12 months. This is on the back of a falling gold price, and a coup in Mali. The miner expects to produce over 400,000 ounces of gold this financial year, although some analysts have expressed doubts about whether the company will meet those forecasts.
Sick of picking losing stocks? If you're looking in the market for some high yielding ASX shares, look no further than "Secure Your Future with 3 Rock-Solid Dividend Stocks". In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.
More reading
The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691).
