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Why these ASX shares just crashed to multi-year lows

The market may have pushed higher last week and be trading close to its highest levels of the year again, but not all shares were so fortunate.

The three shares listed below have all come under pressure recently and hit 52-week lows or worse on Friday. Here’s why they are down in the dumps:

The Dacian Gold Ltd (ASX: DCN) share price crashed 76% lower to a multi-year low of 38 cents last week. Investors were hitting the sell button in a panic after the gold miner downgraded its quarterly production guidance and increased its cost guidance for the current quarter. Instead of 50,000-55,000 ounces of gold at an all-in sustaining cost (AISC) of between $1,050 to $1,150 an ounce, Dacian now expects to produce 36,000-38,000 ounces at an AISC of $1,500-$1,600 an ounce. This has been caused by underground contractor performance issues returning. Management also revealed that the Mt Morgans operation is now expected to produce 160,000-180,000 ounces per year over the next five years, down from previous estimates of 200,000 ounces per year. This poor performance and its spiralling costs appear to have sparked fears that Dacian could follow fellow gold miner Gascoyne Resources Ltd (ASX: GCY) into administration in the near future.

The Mayne Pharma Group Ltd (ASX: MYX) share price was trading at a multi-year low of 50 cents on Friday. Investors have been hitting the sell button in a panic over the last few weeks after the pharmaceutical company released a disappointing market update in May which revealed that its key Generics Products division had been underperforming expectations once again. During the first four months of the second half the division has posted a 32% decline in revenue compared to the prior corresponding period. Challenging trading conditions have been blamed for the underperformance.

The Pendal Group Ltd (ASX: PDL) share price tumbled to a multi-year low of $6.86 at the end of last week. Pendal, which was formerly known as BT Investment Management, has come under pressure recently following Brexit and a disappointing first half performance. During the first half of FY 2019 the asset manager reported a 26% decline in cash earnings to $84.5 million. Management blamed the poor result on significantly lower performance fees, which fell 91% to $4.4 million. The Pendal Group share price is now down 28% over the last 12 months.

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*Returns as of 6/8/2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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