Why Ausgold, DroneShield, EML, and TPG shares are falling today

These shares are having a tough time on hump day. But why?

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Key points

  • Ausgold's shares dipped following a discounted capital raise aimed at accelerating their Katanning Gold Project, marking significant strides towards emerging as a mid-tier gold producer.
  • DroneShield shares dropped sharply after the sudden resignation of its US CEO, raising concerns despite the company's strong ties with key US Government agencies and anticipated market growth.
  • EML Payments experienced a share price decline as it reported a substantial drop in quarterly earnings, although it maintained its full-year earnings guidance amidst these challenges.

The S&P/ASX 200 Index (ASX: XJO) is having a subdued day on Wednesday. In afternoon trade, the benchmark index is up a fraction to 8,474.4 points.

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

Ausgold Ltd (ASX: AUC)

The Ausgold share price is down 8.5% to 80.5 cents. This morning, this gold miner announced a fully underwritten two-tranche placement to raise $80 million. The company is raising the funds at a discount of 80 cents per new share. Management notes that the capital raising proceeds, together with existing cash, will support the acceleration of its Katanning Gold Project (KGP) towards a final investment decision. Ausgold's executive chairman, John Dorward, said: "The successful completion in June of the Katanning Gold Project Definitive Feasibility Study and the recent freehold land acquisitions are major milestones on the road to Ausgold becoming Australia's next mid-tier gold producer."

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 13.5% to $2.12. Investors have been selling the counter drone technology company's shares after it announced the resignation of its US CEO, Matt McCrann, effective immediately. In response to the news, DroneShield's CEO, Oleg Vornik, commented: "DroneShield thanks Matt for his contribution to the business and wishes Matt well for his next steps. Our U.S. business includes talented, highly experienced personnel, with our counterdrone systems deployed with a number of tier 1 U.S. Government agencies. The U.S. represents a very important market for DroneShield, that is anticipated to grow across both military and civilian domains, as drones continue to pose an increasing threat."

EML Payments Ltd (ASX: EML)

The EML Payments share price is down 3% to 85.2 cents. This morning, this payments company released a trading update and revealed that its first quarter underlying EBITDA was down 42% on the prior corresponding period to $6.8 million. Despite this, management has reaffirmed its FY 2026 underlying EBITDA guidance range of $58 million to $63 million.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price is down 4% to $3.65. The catalyst for this has been the completion of the institutional component of its reinvestment plan, raising $300 million. Approximately 83 million new shares will be issued at a price of $3.61 per new share. This represents a 5% discount to TPG Telecom's last close price of $3.80. TPG Telecom's managing director and CEO, Iñaki Berroeta, said: "We wish to recognise the strong commitment of the TPG Telecom shareholders who supported this raising. The Reinvestment Plan is the final step of our Capital Management and Liquidity Plan."

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 positions in and has recommended DroneShield and EML Payments. 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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