Australasian Gold (ASX:A8G) share price explodes 80% higher before being halted, then resumed

What on earth happened to the Australasian Gold share price today?
The post Australasian Gold (ASX:A8G) share price explodes 80% higher before being halted, then resumed appeared first on The Motley Fool Australia. –

The Australasian Gold Ltd (ASX: A8G) share price has certainly had a day to remember this Thursday. This small-cap gold miner has seen its share price rocket an incredible 80% at one point this morning. That was before the ASX stepped in and halted the company’s shares from trading. A few hours later, trading has now resumed.

But let’s backtrack a little. Australasian Gold is a tiny ASX company by normal standards. It currently has a market capitalisation of just $9.77 million.

This company is in the exploration phase, and has purchase agreements over 274.3sq km of tenements. These include the May Queen and Mt Clermont gold projects in Queensland, and the Fairview gold project in Western Australia.

So what happened to Australasian Gold shares today?

Australasian Gold share price targeted for ‘pump and dump’

Well, Australasian Gold’s shares rocketed on open… on no major news or announcements out of the company. Soon after open, Australasian Gold shares hit a high of 47 cents a share, which represents a rise of roughly 80% from yesterday’s close.

Soon after this, the company’s shares were placed in a trading halt following a ‘speeding ticket’ from the ASX. The ASX sent the company a ‘please explain’ regarding the unusual trading happening this morning. Australasian Gold told investors it wasn’t aware of anything that might have caused this activity.

However, a report from the Australian Financial Review (AFR) today places the blame on an online investor group. Here’s what the report alleges happened:

Members of two organised ASX pump and dump groups using encrypted messaging app Telegram named it [Australasian Gold] as a target… Messages to the group chats in the days prior to the pump signal flagged the morning of September 9 as the target date for an organised pump of a penny stock, which preferably had a price sensitive announcement to evade a quick trading halt from suspicious regulators.

Well, it seems to have worked, at least for a time. although it is worth noting that the group’s apparent aim of evading the ASX regulators didn’t entirely go to plan, given the rather swift trading halt.

But perhaps the group’s potential reasons for targeting Australasian Gold are now more clear. This afternoon, the company has released an investor presentation, albeit not one designated as ‘price sensitive’ by the ASX.

This presentation outlined some results from initial drilling at the company’s three gold projects. Probably nothing that might normally result in the kinds of share price moves we saw this morning though.

At the time of writing, the Australasian Gold share price has resumed trading today, and is currently sitting at 30 cents a share. That’s still up 17.65% for the day, but well below the 47 cents a share peak we saw this morning.

The post Australasian Gold (ASX:A8G) share price explodes 80% higher before being halted, then resumed appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australasian Gold right now?

Before you consider Australasian Gold, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australasian Gold wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Soul Patts (ASX:SOL) share price hits record high amid copper spin-off rumours
Oil Search (ASX: OSH) share price falters after market update
Tech shares leading ASX 200 (ASX:XJO) losses on Thursday

The Renascor Resources (ASX:RNU) share price is up 41% in 30 days
Thomson Resources (ASX:TMZ) share price jumps 10% on US initiatives

Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!