Why Chalice Mining, Predictive Discovery, Premier Investments, and St Barbara shares are sinking today

These shares are missing out on the good time on Thursday. But why?

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Key points

  • Chalice Mining slips 2.5% after its Gonneville project PFS fails to impress investors, despite promising long-term cash flow, as UBS cuts its price target due to uncertain near-term value impacts.
  • Predictive Discovery tumbles 7% following Perseus Mining’s decision to drop its takeover bid, dampening hopes for a bidding war that had previously buoyed the stock.
  • St Barbara plunges nearly 11% as investors react to its strategic asset sell-down in the Simberi gold operations, overshadowing the premium transaction value and fuelling market uncertainty.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.55% to 8,626.8 points.

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

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is down 2.5% to $1.62. Investors have been selling this mineral exploration company's shares this week following the release of the pre-feasibility study (PFS) for the Gonneville Palladium-Nickel-Copper Project. The PFS confirmed a long life, globally competitive critical minerals mine in Western Australia, which it believes will generate $4.7 billion in free cashflow (pre-tax) over an initial 23 year open-pit mine life. In response to the update, UBS retained its neutral rating but slashed its price target down to $1.75.

Predictive Discovery Ltd (ASX: PDI)

The Predictive Discovery share price is down 7% to 65.5 cents. This morning, fellow gold miner Perseus Mining Ltd (ASX: PRU) revealed that it was ending its pursuit of Predictive Discovery after its proposal was no longer deemed to be superior. It is possible that some investors were counting on a bidding war breaking out between Perseus and fellow suitor Robex Resources.

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is down 4% to $14.43. This has been driven by the retail conglomerate's shares going ex-dividend this morning for its latest payout. In September, the Peter Alexander and Smiggle owner released its FY 2025 results and reported a sizeable a 31.1% jump in profit. This strong form allowed the company's board to declare a fully franked final dividend to 50 cents per share. Eligible shareholders can now look forward to receiving this dividend next month on 23 January.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down almost 11% to 50 cents. Investors have reacted negatively to news that the gold miner will sell down interests in its Simberi gold operations in Papua New Guinea. Chinese company Lingbao Gold Group (HKG: 3330) has agreed to pay $370 million for a half stake in a subsidiary that would own 80% of the Simberi gold project. The remaining 20% of the project is being sold to Kumul Mineral Holdings for $100 million. The company notes that the "transaction values 100% of the Simberi Gold Project at $800 million which represents a 31% premium to the current St Barbara market capitalisation."

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 recommended Premier Investments. 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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