asic slaps citigold for output forecasts

http://money.ninemsn.com.au/article.aspx?id=7982842

22/09/2010 11:54:01 AM

Citigold Corporation Ltd has paid a $33,000 penalty after a slap on the wrist from the corporate watchdog for allegedly failing to tell the market about downward revisions to its forecast gold production for the December 2009 quarter.

Despite the rebuke, shares in Citigold rose half a cent, or 3.85 per cent, to 13.5 cents by 1135 AEST, before settling back to 13 cents by 1144 AEST, which was steady.

The Australian Securities and Investments Commission (ASIC) said Citigold had failed between December 11 and 16 last year to notify the market about lower gold output from its Charters Towers mine in Queensland for the December quarter.

"Citigold knew that its gold production for the December 2009 quarter was expected to be 5,000 ounces and that its gold production target for 2010 had been revised to 50,000 ounces," ASIC said in a statement on Wednesday.

"These figures were significantly below its public forecasts announced on 30 April 2009 of 15,000 ounces in the fourth quarter of 2009 and 85,000 for the 2010 year and were affirmed in its quarterly reports throughout 2009, including on 27 October 2009.

"Citigold did not announce its revised gold production figures until ... 16 December 2009.

"If this information was generally available it could have a material effect on the price or value of Citigold's securities."

ASIC said Citigold claimed on May 21 last year that it was on track with its gold production forecasts and that this might be relevant information for shareholders considering taking up entitlements under its share purchase plan announced on April 14, 2009.

ASIC said Citigold had elected to comply with the infringement notice, but this was not an admission of guilt or liability, and the miner was not regarded as having contravened its continuous disclosure obligations.