The All Ordinaries (Index: ^AORD) (ASX: XAO) has closed flat today at 5,496.20 points, after an early spark was quickly shut down and then the market dithered through the rest of the day.
These 4 companies saw their share prices shot down for varying reasons…
OceanaGold Corporation (ASX: OGC) shares plunged more than 10% to $3.89, after the gold miner’s Philippines gold mine was listed as one facing potential suspension after apparently failing an environmental audit, as we explained earlier today. That’s one threat facing miners operating in countries such as the Philippines, as fellow gold miner Kingsgate Consolidated (ASX: KCN) has found out in Thailand. For companies with one mine, that can be the end.
Galaxy Resources Limited (ASX: GXY) fell 7.8% to $0.295, perhaps after investors had time to analyse broker Baillieu Holst’s recent research note on the lithium miner. Mt Caitlin was meant to begin producing lithium concentrate earlier this year, but is now only expected to start operations in December 2016 and the broker thinks the company has a cash flow problem. Still, if the broker’s forecasts are right, the share price looks very cheap.
iCar Asia Ltd (ASX: ICQ) saw its share price drop 3.3% to $0.295. The automotive classifieds company is attempting to do something similar to what Carsales.com Ltd (ASX: CAR) has done in Australia, in several Asian countries. Unfortunately, iCar Asia appears to be struggling to gain traction, and the company was forced to raise $23 million in cash earlier this month. Those shares are already underwater – being issued at 32 cents a share – so perhaps some investors are selling out to limit the risk of further losses.
Lucapa Diamond Co Ltd (ASX: LOM) fell 5.4% to 43.5 cents, most likely as traders takes some profits after the diamond miner’s strong recent run. As we noted earlier this week, a string of huge diamond discoveries has propelled the share price higher this year, which should also see the company report its maiden full year profit early next year. However, we did warn investors that operating in third-world countries is a highly risky proposition (ask Kingsgate and OceanaGold).