Why is the Anson Resources (ASX:ASN) share price down 16% in a week?

Despite plenty of news having been released by the company, the Anson Resources share price has been struggling lately.

| More on:

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 Anson Resources Ltd (ASX: ASN) share price has been plummeting over the last 7 days.

The company has released several announcements to the ASX in that time, detailing free offers, positive assay results, and its approach to environmental, social, and governance (ESG) issues.

However, the updates haven't been enough to boost the company's stock out of its slump.

Since this time last week, the company's shares have fallen 16.3% to trade at 9.2 cents.

Let's take a look at what Anson Resources has been up to over the course of this week.

white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

What's Anson been up to this last week?

The Anson Resources share price has been struggling over the last week despite releasing 3 seemingly positive updates.

First, the company provided more details on its previously proposed bond offer. Under the offer, shareholders in the company will receive 1 bonus offer for every 10 shares they hold.

The freebie was announced last Tuesday as part of a $7.35 million placement. Though, its prospectus was released after Friday's close.

Under the prospectus, the free offer will have an exercise price of 9.1 cents and will expire on 29 October 2021.

For each option exercised, shareholders will receive another free option with an exercise price of 20 cents and an expiry date of 31 July 2023.

On Monday – the first time the market could react to the prospectus – the Anson share price fell 6.3%.

Then, on Tuesday, Anson announced assay results from stage 2 of exploration at its Yellow Cat Project. The assay results included:

  • up to 10.33% triuranium octoxide – a compound of uranium – and 25.61% vanadium oxide.

The Anson share price gained back 3.3% on the back of the assay results.

Today, it managed to recover from a poor start to trade. At the time of writing, the Anson share price is flat with its previous closing price.

This morning the company released a non-price sensitive investor presentation on its approach to ESG issues.

Anson's approach to ESG issues sees it adopting sustainable technologies, avoiding disturbing natural or historical environments, and employing local people.

Anson share price snapshot

Despite its recent slip, the Anson share price is currently 200% higher than it was at the start of 2021.

It has also gained 350% since this time last year.

Motley Fool contributor Brooke Cooper 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.

More on Resources Shares

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Resources Shares

Are Fortescue shares a top buy in March?

Fortescue shares have delivered strong returns, but are they still a buy?

Read more »

A female athlete in green spandex leaps from one cliff edge to another representing 3 ASX shares that are destined to rise and be great
Share Gainers

Guess which ASX lithium share is leaping 14% in Friday's sinking market

Investors are piling into this small-cap ASX lithium miner today. But why?

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

4 cheap Aussie rare earths companies which are worth a look, according to Wilsons Advisory

Despite a sell-off, the fundamentals of the sector remain strong.

Read more »

View of a mining or construction worker through giant metal pipes.
Resources Shares

Woodside vs Santos: Which ASX energy stock is the best fit for your portfolio?

Rising oil prices may lift all energy stocks, but investment profiles differ.

Read more »

An athlete runs fast with a trail of yellow smoke billowing out behind him.
Broker Notes

Up 139% in a year, why this buy rated ASX All Ords rare earths stock could keep racing higher

A leading broker forecasts more outperformance to come from this surging ASX rare earths stock.

Read more »

Two miners talking to each other.
Resources Shares

Buy, hold, sell: 3 ASX mining shares

ASX mining shares have been the worst hit by the war in Iran.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Resources Shares

2 ASX mining stocks that could rise 60% to 100%+

Morgans believes these stocks could be top options in the sector.

Read more »

A woman blowing gold glitter out of her hands with a joyous smile on her face.
Resources Shares

2 ASX gold stocks tipped to double in value

Despite the recent pullback, brokers remain strongly bullish on the shares.

Read more »