The DevEx Resources Ltd (ASX: DEV) share price had a tough day today despite no news from the company.
In fact, the company hasn’t released any price-sensitive announcements to the market for more than a month.
Yet the DevEx share price finished well in the red today, down 10.19% to 48.5 cents.
Let’s take a look at what might have weighed on the company’s shares today.
DevEx share price drops on Monday
DevEx is a mining exploration company digging for gold, copper, uranium, and other metals. The company’s major focus is its copper and gold discoveries in the Lachlan Fold Belt region of New South Wales. It also has interests in nickel-copper-PGE exploration in Julimar, Western Australia.
One clue as to the performance of the company’s share price today may lie in the broader performance of gold.
The S&P/ASX All Ordinaries Gold (ASX: XGD) index dropped 8.7% by market close today. For perspective, the S&P/ASX 200 Materials (ASX: XMJ) index finished 0.13% higher.
DevEx’s last price-sensitive announcement to the market was back on 10 November. It was an update on the completion of two diamond drill holes at the Sovereign Nickel-Copper-PGE Project in Western Australia.
As the Motley Fool reported at the time, the discovery was well received by investors and led to them snapping up DevEx shares.
Since that time, the directors of the company have been involved in several share transactions.
According to company notices, most of the transactions carried out since 10 November were as a result of the exercise of options. However, two buy transactions by company chair Tim Goyder, worth a total of around $335,000, were on-market trades.
In total between 10 and 18 November, the company’s directors purchased more than $1.1 million worth of DevEx shares. Potentially, outside investors saw this as a vote of confidence in the company.
The only other news since then was the chairman’s address and AGM presentation on November 24.
Overall, the company reported a positive year including an increase in market capitalisation and positive developments on several exploration projects.
DevEx share price recap
Despite today’s plunge, the DevEx share price has rocketed 136% in the past 12 months and 111% year to date.
However, during the past month, the company’s shares have dropped by nearly 13% and 10% in the past week.
DevEx has a market capitalisation of nearly $152 million based on its current share price.
The post Why did the DevEx Resources share price plunge 10% today appeared first on The Motley Fool Australia.
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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.
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