Why 29Metals, Beach Energy, Newmont, and WIA Gold shares are falling today

These shares are under pressure on Tuesday. But why?

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Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.

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Key points

  • A seismic event causing production issues at a miner's Western Australian site led to a 23% share price drop.
  • An energy producer's shares decreased by 2.5% amid falling oil prices and a negative broker note from Citi.
  • Shares of a gold miner fell due to CEO resignation, and a gold project company's stock declined 5.5% following disappointing study results.

The S&P/ASX 200 Index (ASX: XJO) is continuing its positive run on Tuesday. In afternoon trade, the benchmark index is up 0.1% to 8,874.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

29Metals Ltd (ASX: 29M)

The 29Metals share price is down 23% to 42 cents. This follows the release of an update from the copper miner in relation to its Golden Grove mine site in Western Australia. According to the release, there has been a further seismic event within the Xantho Extended orebody that could impact its zinc production. Management stated: "The time required to reinstate ground support to impacted Xantho Extended production levels to access high-grade zinc ore, previously planned for the December quarter, is currently being assessed. Accordingly, full year guidance for zinc production is withdrawn. Alternate ore sources, with lower zinc grades, will be mined whilst access to Xantho Extended is restricted."

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 2.5% to $1.15. This may have been driven by a pullback in oil prices overnight in response to oversupply concerns. In addition, Beach Energy was the subject of bearish broker note out of Citi this morning. According to the note, the broker has retained its sell rating and $1.05 price target on the energy producer's shares. It prefers other energy producers for exposure to this side of the market.

Newmont Corporation (ASX: NEM)

The Newmont share price is down 2% to $129.66. Investors have been selling this gold miner's shares after it announced the resignation of its CEO, Tom Palmer. The world's largest gold miner advised that Palmer will retire from his role and as a member of the board of directors on 31 December. He will be replaced by Natascha Viljoen, who is the current chief operating officer. Commenting on his exit, Palmer said: "After 12 years with Newmont, and almost 40 years in the mining industry, it is time for me to retire and hand over to Natascha to lead our Company through the next chapter in its storied history. It has been a privilege to serve as CEO of Newmont."

WIA Gold Ltd (ASX: WIA)

The WIA Gold share price is down 5.5% to 34.5 cents. This follows the release of the scoping study results for its Kokoseb Gold Project in Namibia. The company notes that the study confirms Kokoseb as an outstanding gold project. It will have an initial 11+ year life of mine, forecast production from an open pit mine of ~180 koz of gold per annum for the first five years, and an all-in sustaining cost (AISC) of US$1,265/oz. It seems that the market was expecting more from the study.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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