Why is the Dacian Gold (ASX:DCN) share price frozen today?
Why is the Dacian Gold (ASX:DCN) share price frozen today?
The Dacian Gold Ltd (ASX: DCN) share price will resume trading on Friday after announcing a $40 million capital raising.
Kerry Sun is a site writer at The Motley Fool Australia. He holds a Bachelor of Commerce, majoring in Finance and Economics. Kerry started his investing and trading journey back in 2014, riding the highs of A2 Milk and lows of Slater and Gordon. Kerry takes a techno-fundamental view on stocks, understanding the importance of sound fundamentals supported by a strong technical chart. Current sectors of interest include US sports betting, rare earths, lithium and BNPL.
The Dacian Gold (ASX:DCN) share price has slumped 5%. Here’s why.
Ken Hall | April 29, 2021 10:54am |
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The
Dacian Gold Ltd (ASX: DCN) share price is one ASX share to watch today. Shares in the Aussie gold miner have dropped 5.4% in early trade after the company’s latest quarterly update.
Why is the Dacian Gold share price slumping?
The big news today was Dacian’s latest production and activities numbers. Dacian reported March quarter production of 21,400 ounces of gold at an all-in sustaining cost (AISC) of $1,874 per ounce. Those numbers came from the Mt Morgans Gold Operation (MMGO) output with year to date production of 81,361 ounces.
Goldman Sachs, its analysts have retained their
sell rating and $68.54 price target on this stock exchange operator’s shares. This follows the release of a mixed update for the month of December and calendar year 2020. While the broker feels recent weakness in its share price means that risks are now being more appropriately reflected, its shares have not fallen enough for a change of rating. The broker still feels they are overvalued at the current level. The ASX share price ended the week at $72.75.
A note out of the
Macquarie equities desk reveals that its analysts have retained their
underperform rating and 34 cents price target on this gold miner’s shares. The broker notes that Dacian Gold outperformed its expectations in the December quarter despite facing some operational disruptions. However, due to the broker’s subdued outlook for the gold price, it isn’t in a rush to make any changes to its recommendation. The Dacian Gold share price last traded at 54 cents.