Greatland Resources issued ‘please explain’ by the | Australian Markets
The share market operator has ordered Greatland Resources to elucidate why output forecasts have been slashed not long after its ASX debut, inflicting $1 billion of shareholder worth to evaporate in sooner or later.
The gold miner’s share price had been using as high as $7.80 following a stellar begin to life as an Australian Securities Exchange-listed company at the finish of June. This adopted an initial public offering at $6.60.
But these positive factors can be obliterated when Greatland downgraded manufacturing steering from its Telfer mine in WA’s north for the 2026 financial 12 months. Its stock plummeted 24 per cent on July 29 to complete the day’s trade at $5.24.
Greatland had already confronted accusations Australia’s company cop was on its back about the downgrade, an accusation which the company has thus far rejected, when on Friday the ASX printed a ‘please explain’ letter.
Greatland had a manufacturing goal for financial 12 months 2026 of between 300,000 ounces and 340,000oz of gold in its prospectus to checklist on the ASX, which was cut to between 260,000oz and 310,000oz on July 29.
A better all-in sustaining price forecast was additionally flagged July 29 — from a vary of $2,400/ouncesand $2,600/ouncesto $2,400/ouncesand $2,800/oz.
The ASX grilled Greatland over whether or not anybody knew the shock downgrade was coming at the time of its itemizing.
“The updated production target was not determined until after a meeting of the company’s board of directors, which was held after market close on 28 July 2025 to approve the FY26 budget,” Greatland said in response.
“The updated production target was finalised after the board meeting and announced on 29 July 2025 in the company’s June 2025 quarterly report.”
On prices, Greatland mentioned it believed the band increase was not “material”.
“The company did not consider that a reasonable person would expect the updated cost guidance Information to have a material effect on the price or value of its securities, given the difference in the mid-points of the AISC forecast ranges only increased by approximately 4 per cent.”
A company spokesman mentioned Greatland’s response to the ASX queries confirmed its compliance with its steady disclosure obligations.
Greatland is backed by Fortescue heavyweights together with Andrew and Nicola Forrest, Elizabeth Gaines and Mark Barnaba.
The ASX despatched the letter to Greatland a day after Australian Financial Review’s Street Talk column reported that the Australian Securities and Investments Commission had been asking questions on what the company and its advisers knew at the time of the float.
Taking questions from media at Diggers & Dealers on Tuesday about whether or not ASIC had spoken to the Greatland, Mr Day mentioned: “We weren’t contacted to comment on that. If we had been, we would have said no.”
An ASIC spokeswoman declined to remark when requested by The West Australian there had been any sort of engagement with Greatland.
Asked more about the downgrade and the market’s response, Mr Day stored issues temporary.
“I respect the market, but what we what we focused on was just making sure that we gave a clear update, and we’re really confident that we can achieve that update.”
Greatland shares are but to get better from the July 29 massacre — they traded at $5.21 every by 12.50pm.
The previously London-based company, which has a market capitalisation of about $3.5b, purchased its flagship Telfer mine and the neighbouring Havieron project for up to $US475m from Newmont Corporation in September.
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