Why Amplitude Energy, Brazilian Rare Earths, Nexgen, and Northern Star shares are falling today

These shares are ending the week in the red. But why?

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Key points

  • Several ASX shares dropped despite the overall positive trend in the S&P/ASX 200 Index, with key movements attributed to recent announcements and market conditions.
  • Amplitude Energy shares fell 2% after releasing its annual report and announcing a stock consolidation plan, while Brazilian Rare Earths declined nearly 4% following a maiden mineral resource estimate announcement.
  • Nexgen Energy shares dropped over 2% due to an upsized $600 million equity offering, and Northern Star Resources saw a 1.5% decrease as investors responded to a dip in gold prices, potentially taking profits after recent gains.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.5% to 8,990 points.

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

Amplitude Energy Ltd (ASX: AEL)

The Amplitude Energy share price is down 2% to 23.5 cents. This follows the release of the energy company's annual report this morning. It seems that some investors have seen something they didn't like. In other news, the company has announced a stock consolidation. If shareholders approve, this will see 11 shares consolidated into 1 share. It believes the move will reduce volatility in its share price, reduce the bid-offer spread, potentially attract additional investors, and better reflect its status as a mature gas production company.

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is down almost 4% to $4.03. This morning, this mineral exploration company released its maiden mineral resource estimate for the Amargosa Bauxite-Gallium project. The company's managing director and CEO, Bernardo da Veiga, said: "Amargosa's maiden mineral resource estimate defines a large-scale, high-quality bauxite province with premium alumina grades and low reactive silica – a key advantage as global alumina refineries prioritise higher-quality bauxite specifications from reliable, stable jurisdictions."

Nexgen Energy (ASX: NXG)

The Nexgen Energy share price is down over 2% to $13.38. This follows news that the company has upsized its previously announced equity offering to $600 million at a price of $13.10 per new share. Nexgen was previously seeking to raise $400 million. It intends to use the net proceeds from the offering to advance engineering of the Rook I project, for Rook I pre-production capital costs, and for general corporate purposes.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 1.5% to $24.44. Investors have been selling Northern Star and other ASX gold stocks today following a pullback in the gold price overnight. This has seen the S&P/ASX All Ordinaries Gold index falling by 0.75% today. A spot of profit taking could be taking place today. After all, despite today's softness, Northern Star's shares are up 22% since this time last month and a sizeable 58% year to date.

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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