The Perenti (ASX:PRN) share price is dropping 4% today. Here’s why

The Perenti Global Ltd (ASX: PRN) share price is down more than 4% following an underground incident. Here is what the company announced.
The post The Perenti (ASX:PRN) share price is dropping 4% today. Here’s why appeared first on The Motley Fool Australia. –

The Perenti Global Ltd (ASX: PRN) share price is in the red during late afternoon trade. This follows the diversified mining company’s announcement that an underground incident has occurred at Obuasi mine in Ghana.

At the time of writing, Perenti shares are shedding 4.29% to 67 cents. It’s worth noting though that before the update, the company’s share price was flat at 70 cents.

Let’s take a close look and see what Perenti updated the ASX with.

Search effort underway

Investors are selling off Perenti shares in light of the company’s latest news.

In its announcement, Perenti advised that a mining employee from the Underground Mining Alliance (UMA) has disappeared at AngloGold Ashanti CDI’s (ASX: AGG) Obuasi mine.

The UMA is a joint venture between Perenti’s subsidiary, African Underground Mining Services and Rocksure, a local Ghanaian contracting company. The companies hold a 70% and 30% interest, respectively.

According to AngloGold Ashanti’s release, a mining contractor went missing after a fall of ground in one of the operation’s mining stops. The incident took place on 18 May and immediately triggered a search and rescue effort.

AngloGold Ashanti noted that rescue teams have worked around the clock in difficult geotechnical conditions to find the missing colleague.

Relevant authorities have been notified and are providing support to the worker’s family and friends. In addition, UMA is working closely with AngloGold Ashanti during this time.

AngloGold Ashanti emphasised that safety is paramount and as a result, will indefinitely suspend all mining activity at Obuasi mine. Perenti expects the shutdown won’t have any material impact on its FY21 earnings.

An update on the situation is expected to be provided in due course.

About the Perenti share price

Established in 1987, Perenti is one of the world’s largest companies that provides surface and underground mining and support services. The group is headquartered in Australia, and has operations and offices across 11 countries.

Over the past 12 months, the Perenti share price has fallen over 40%, with year-to-date performance also down more than 50%. The company’s shares reached a 52-week high of $1.60 in June 2020 on the back of a positive business update. However, the company’s recent half-year results in February sent its shares south.

On valuation grounds, Perenti presides a market capitalisation of roughly $471 million, with about 704 million shares on issue.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

More reading

ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears

These were the worst performing ASX 200 shares last week

The Perenti (ASX:PRN) share price is collapsing 29%. Here’s why
Why American Pacific Borates, NAB, Perenti, & Xero are tumbling lower

ASX 200 dips, NIB soars, Perenti rises

The post The Perenti (ASX:PRN) share price is dropping 4% today. Here’s why appeared first on The Motley Fool Australia.

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!