The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has fallen 0.3% to close at 4,656, as the market continues to wipeout the gains made in 2013. Again it was China worries dragging on the market, this time it was concerns over stresses in the Chinese banking system, while weak offshore markets pointed to a weak start.
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Linc Energy Limited (ASX:LNC) lost 12.2% to end at 82.5 cents after media reports suggested Linc was in early stage talks to buy a coal mine jointly owned by BHP Billiton and Mitsubishi. BMA closed the Gregory mine last year as it was no longer profitable in the face of falling coal prices, high labour costs and a strong Australian dollar. Perhaps investors are a bit mystified why Linc would want to buy a high cost coal mine, with just a four year life span?
Fund manager Perpetual (ASX:PPT) fell 7.6% to $35.13, continuing its recent pullback from a year high of $45.99. That has coincided with recent market falls, which fund managers are sensitive to. As funds under management falls, either from falling markets or withdrawals, Perpetual see less revenue, with fees charged as a percentage of assets under management.
Not only suffering from lower gold prices, Perseus Mining (ASX:PRU) today announced a drop in forecast production, due to issues at its Edikan gold mine in Ghana. Not only is production expected to be lower, total cash costs are also expected to exceed the forecast of US$1,100 an ounce. The market punished the shares, which fell 24% to 50.7 cents. Perseus shares have now lost 75% of their value in the last six months.
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Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned.
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