Peninsula Energy (ASX
EN) on April 17 went into a trading halt on the back of news it had a downward amendment to uranium production guidance for the market to announce, which was due no later than yesterday (April 23).
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So far, it’s now Thursday, and yet no guidance amendment. That’s a big no-no. So, in turn, the compliance desk at the ASX has made the move to suspend Peninsula Energy’s shares from Thursday trades.
That’s a slightly more severe type of suspension, as opposed to the more common type investors may be more familiar with, when a company suspends itself in the fashion of a trading halt.
In short, Peninsula has been slapped on the wrist by the ASX.
Shares can stay suspended for a very long while in this fashion, now leaving investors and HotCopper users alike to digest and interpret for themselves when, exactly, Peninsula is likely to release that updated guidance.
(Consider that was Star Entertainment’s big problem for the last few months, until it finally notched a deal with Bally’s Corp.)
No company wants to admit it will be producing less lithium than it thought. Especially not on a day like Wednesday, where Paladin Energy helped save uranium sentiment and brought a basket of uranium stocks up along with it.
On Tuesday, Deep Yellow stated uranium prices were too cheap to make mining it at their Tumas project economic, and uranium stocks got battered. That didn’t last long – Wednesday saw a green day for that subsector, more or less.
Peninsula Energy was likely keenly aware it might be exposed to higher selling activity as people allocated out of it, given there’s plenty of uranium companies right now not downgrading production guidance.
Or maybe it wasn’t at all, and I don’t mean to suggest Peninsula is deliberately staggering its downgrade announcement.
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But it would be equally likely on Thursday, too, given that big-name uranium stocks are broadly in the green on Thursday.
As for why, that isn’t exactly clear. But it looks like Deep Yellow’s Tuesday gloom has truly worn off.
PEN last traded at 62cps.
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Jonathon Davidson
The Market Online, Australia
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