Why Core Lithium, Duratec, Galan Lithium, and Michael Hill shares are sinking today

These shares are starting the week in the red. But why?

| More on:
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.

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) is having a good start to the week. In afternoon trade, the benchmark index is up 0.75% to 7,872.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 6% to 15.5 cents. This was despite the lithium miner announcing the appointment of its new CEO this morning. The company has appointed Paul Brown as CEO, effective 4 June 2024. The release notes that Mr Brown has a successful professional career spanning 25 years in the Australian resources industry. This includes as the current CEO of $49 million Hastings Technology Metals (ASX: HAS). The company said: "The Board's priorities in selecting a new CEO were identifying someone with lithium mining experience who will consider all options for the restart of mining operations to guide Core's activities in response to the low price lithium environment."

Duratec Ltd (ASX: DUR)

The Duratec share price is down 4% to $1.06. This has been driven by a guidance downgrade from the engineering, construction, and remediation contractor. It was targeting revenue of $570 million to $610 million and EBITDA of $45 million to $52 million in FY 2024. However, due to delays in expected project awards, Duratec now expects revenue of $550 million to $565 million and EBITDA of $46 million to $48 million.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is down 17% to 24 cents. This morning, this lithium developer announced firm commitments for an equity raising of $14 million to institutional, sophisticated, and professional investors. These funds will be raised at 23 cents per new share. This represents a 20.7% discount to where its shares last traded. The equity raising will provide working capital headroom and financial flexibility for the ongoing development of the Hombre Muerto West (HMW) Phase 1 construction.

Michael Hill International Ltd (ASX: MHJ)

The Michael Hill share price is down 19% to 49.5 cents. Investors have been hitting the sell button today in response to the release of a trading update from the jewellery retailer. It notes that the positive sales momentum it had been expecting through the second half has not materialised. As a result, second half sales are broadly in line with the first half and its margins remain under pressure. This led to its first half earnings being wiped out by a loss in the third quarter.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Share Fallers

A business woman looks unhappy while she flies a red flag at her laptop.
Share Fallers

These were the worst-performing ASX 200 shares in February 2025

These shares were sold off last month. Let's see what happened to them.

Read more »

A woman screams and holds her hands up in frustration.
Share Fallers

Why Brainchip, Endeavour, Star, and Telix shares are sinking today

These shares are ending the week deep in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Appen, IDP Education, Objective Corp, and Siteminder shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why Appen, Flight Centre, Fortescue, and Platinum shares are sinking today

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

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Domino's, Johns Lyng, Polynovo, and Praemium shares are dropping today

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

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 Block, Guzman Y Gomez, Lovisa, and WiseTech shares are sinking today

These shares are starting the week deep in the red. But why?

Read more »

a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.
Share Fallers

Why Guzman Y Gomez, Jumbo, PWR, and REA Group shares are crashing today

These shares are ending the week deep in the red. What's going on?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why ANZ, Goodman, Magellan, and Super Retail shares are sinking today

These shares are having a very tough time on Thursday. But why?

Read more »