Why Firefly Metals, Pantoro Gold, Step One, and Vulcan Energy shares are sinking today

These shares are having a tough session on Thursday.

Key points
  • As the S&P/ASX 200 Index is edging higher but Firefly Metals is falling over 5%, pulling back despite securing a hefty $134.1 million for ambitious growth at its Canadian project.
  • Despite hitting solid drilling results, Pantoro Gold cooled off by 5% amid a broader gold sector decline, casting shadows over its underlying strong geological forecasts.
  • The steepest drop is Step One Clothing, plummeting 37% after revealing dire sales forecasts, coupled with a hefty obsolescence write-down on unsold stock.

The S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Thursday. In afternoon trade, the benchmark index is up a fraction to 8,599.8 points.

Four ASX shares that are acting as a drag today are listed below. Here's why they are falling:

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

Image source: Getty Images

Firefly Metals Ltd (ASX: FFM)

The Firefly Metals share price is down over 5% to $1.84. This morning, the copper and gold developer announced that it has received firm commitments for $134.1 million equity raising. The proceeds will underpin a resource growth campaign and progress upscaled mining studies at its Green Bay Copper-Gold Project in Canada. FireFly's managing director. Steve Parsons, said: "This highly successful raising means we can embark on a no-holds-barred drilling campaign aimed at creating further shareholder value in a very timely manner."

Pantoro Gold Ltd (ASX: PNR)

The Pantoro Gold share price is down 5% to $4.60. This appears to have been driven by weakness in the gold industry, which has offset the release of an announcement this morning. Pantoro provided an update on the ongoing underground and surface diamond drilling program at its Scotia Underground Mine. Its managing director, Paul Cmrlec, said: "These latest drilling results reinforce our confidence in the Scotia geological model, with stacked high-grade lodes continuing at depth and along strike."

Step One Clothing Ltd (ASX: STP)

The Step One share price is down 37% to 31 cents. Investors have been rushing to the exits after the underwear seller announced dismal sales results for the first half. It advised that it expects half year revenue to be in the range of $30 million and $33 million. This represents a decline of between 31% to 37% on the prior corresponding period. Step One's EBITDA is expected to be a loss of between $9 million and $11 million, which is down from a profit of $11.3 million a year ago. This includes a $10 million obsolescence provision against legacy stock that it has been unable to shift.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is down 31% to $4.24. This has been driven by the lithium developer completed a major capital raising this morning. Vulcan Energy's institutional offer raised 398 million euros (A$710 million) at $4.00 per new share. This represents a 34.7% discount to its last close price. Vulcan's managing director and CEO, Cris Moreno, said: "We would like to thank our existing shareholders for their continued support and welcome our new shareholders onto the register, including strategic investors. The Placement will enable Vulcan to transition from development phase into execution phase with project execution of Project Lionheart due to commence in the coming days."

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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