Why is the Bellevue Gold (ASX:BGL) share price frozen?

Here's why the Bellevue Gold Ltd (ASX: BGL) share price is in a trading halt today. What's going on with this ASX gold miner?

| More on:
asx share price trading halt represented by stop sign

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) has opened the week on a very positive note. At the time of writing, the flagship ASX index is up a healthy 1.54% to 6,775 points. Clearly, investors are trying to put the carnage of last Friday behind them, at least for now.

But one ASX company hasn't turned up to the party. Bellevue Gold Ltd (ASX: BGL) shares are in a trading halt today, frozen on ice at 72 cents a share.

What's going on?

Unfortunately for investors, it's not exactly good news today. The announcement of the trading halt was delivered just before market open this morning. In its release, Bellevue told us that:

The Company was required to request a halt in the trading of its securities today after becoming aware of a historic administrative oversight to the appointment of its previous auditor, Grant Thornton that backdates to 2018…

The non-compliance with Chapter 2M relates to a historical administrative oversight in relation to the appointment of the Company's previous auditor that backdates to 2018. Although the Board does not consider that the oversight described in this announcement is a price sensitive matter, it had no alternative but to request a trading halt in light of legal advice regarding the potential need to seek orders under section 1322 of the Act in respect of the share issues the subject of the cleansing notice.

Bellevue went on to state that "the company should have sought approval" for the Grant Thornton appointment. But due to the oversight, it inadvertently did not seek this approval. Bellevue has also stated that it will "shortly apply" to the Supreme Court of Western Australia for orders declaring that the appointment was not invalid and does not constitute a breach of the Corporations Act.

Bellevue Gold has also told the markets that the Australian Securities and Investments Commission (ASIC) and the ASX have both been informed of the oversight. They have also been informed of the Supreme Court application.

About the Bellevue Gold share price

Bellevue Gold is one of the ASX's mid-tier gold miners. At the current (suspended) Bellevue share price of 72 cents, the company has a market capitalisation of $608.66 million. Bellevue shares have had a fantastic run in recent years, but have given up a lot of that success over the past few months.

Back in March 2016 (five years ago), the Bellevue share price was trading at just 3 cents. But by November last year, Bellevue shares had climbed to a high of $1.49 (a return close to 5,000%). But since November, the Bellevue Gold share price has collapsed by more than 50% to its current level. It will be interesting to see how investors react to today's news when Bellevue is released from its suspension on Wednesday or once its application has been heard.

Motley Fool contributor Sebastian Bowen 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.

More on Share Market News

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another tough day for investors this Tuesday.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why HMC Capital, Platinum, Sigma, and Skycity shares are dropping today

These shares are having a tough session on Tuesday. But why?

Read more »

A close-up photo of a ballot box with an Australian flag in front of it and a gentleman's hands placing his vote in the 2022 election inside the box
Share Market News

How these ASX 200 stocks are primed to gain from Labor's resounding Federal election win

With the Federal election in the rear-view, which ASX 200 stocks should I buy now?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Dimerix, Evolution Mining, Inghams, and NextDC shares are charging higher today

These shares are rising when many are falling today. But why?

Read more »

Smiling young woman eating chocolate outdoors.
Share Market News

The See's Candies playbook for ASX investors

Two ASX businesses that remind me of Buffett’s sweetest investment.

Read more »

Man smiling at a laptop because of a rising share price.
Opinions

My 2 favourite ASX sectors to invest in

Finding your groove can help your investing success.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Opinions

3 things I learned from Warren Buffett being the CEO of Berkshire Hathaway

The Oracle from Omaha is in his last year as CEO.

Read more »

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market today.

Read more »