ASX reponse article8 Aug 2025 05:15
ASX grills Forrest-backed Greatland over post-listing gold downgrade
The ASX has demanded that Greatland Resources explain why it cut its production forecasts just a month after listing, which prompted an investor backlash that wiped $1 billion off its market value in a single day.
Greatland made a splash on the exchange in June when it switched its headquarters from the United Kingdom to Australia, becoming one of the country’s top five gold producers with a market capitalisation of more than $4.6 billion.
The float produced a windfall for Andrew and Nicola Forrest, the mining billionaires who own more than 8 per cent of Greatland via Wyloo, their private mining company.
Greatland shares popped more than 10 per cent on the first day of trading on the back of buoyant expectations for gold output and low production costs, against a backdrop of soaring prices for the precious metal. Greatland floated at $6.60 a share and traded above $7 in the days after the IPO.
However, the miner disappointed the market in July by lowering its annual output forecast to as low as 260,000 ounces, down from the previous guidance of up to 340,000 ounces. This led to its shares tumbling 22 per cent in one day. They currently trade at $5.22, 30 per cent below the IPO price.
The ASX issued Greatland with a “please explain” notice this week, requiring the miner to justify the discrepancy between the figures stated in its prospectus and those presented in its July 29 update.
“The updated production target, updated operating cost information and updated capital cost information (including the preparedness/timing of certain capital expenditure) was not determined until after the board meeting,” Greatland said in response to the ASX.
“I respect the market … but what we focused on was making sure that we gave a clear update.”
— Shaun Day, Greatland managing director
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