Why Mount Gibson, Newmont, Perenti, and Whitehaven Coal shares are dropping today

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

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Key points

  • The S&P/ASX 200 Index has reversed earlier gains and is down 0.1% in the afternoon trade. Several shares are experiencing significant declines.
  • Mount Gibson Iron shares fell nearly 27% due to the decision to cease production at Koolan Island after a rockfall, prioritising safety concerns.
  • Newmont Corporation shares dropped over 3% despite reporting a significant increase in adjusted EBITDA owing to a higher realized gold price and reduced costs, partly due to a decline in production.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and slipped into the red. At the time of writing, the benchmark index is down 0.1% to 9,021 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is down almost 27% to 34.5 cents. This morning, this iron ore miner announced that following a significant rockfall it would be ending production at its Koolan Island operations. The company's CEO, Peter Kerr, said: "It is extremely disappointing for the Company and its people that we must prematurely ramp down operations at Koolan Island, however the physical safety of our personnel is our prime consideration. We will now be working closely with our site team, the Dambimangari Traditional Owners and other relevant stakeholders to responsibly manage the transition and preserve a strong legacy in the region."

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is down over 3% to $128.81. This follows the release of the gold miner's quarterly update this morning. Newmont reported a 15.5% year on year decline in production to 1.42M ounces for the three months. But with its average realised gold price lifting 69.3% from a year ago to US$3,539 per ounce and its costs per ounce reducing, its adjusted EBITDA almost doubled to US$3.3 billion. Newmont CEO, Tom Palmer, said: "Newmont delivered a robust third quarter performance, producing approximately 1.4 million attributable gold ounces and generating a third-quarter record of $1.6 billion in free cash flow, marking the fourth consecutive quarter with over $1 billion in free cash flow."

Perenti Ltd (ASX: PRN)

The Perenti share price is down 2% to $2.71. This morning, this mining services company announced the refinancing of its existing syndicated debt facility. Perenti is taking on more debt, replacing its previous $445 million facility with a new $650 million facility on improved pricing and terms. Management advised that this "ensures appropriate liquidity and funding headroom to support operational requirements and growth initiatives."

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 2% to $6.88. This has been driven by the release of the coal miner's quarterly update. The company reported managed run-of-mine (ROM) coal production of 9 million tonnes, which is down 15% quarter-on-quarter. Whitehaven's CEO, Paul Flynn, said: "Whitehaven delivered a solid first quarter result. New South Wales ROM production totalled 4.4Mt for the quarter, after being modestly affected in the quarter by flooding at the open cut mines, but partially offset by improved output from Narrabri following the long wall move in the previous quarter."

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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