Why Core Lithium, Fletcher Building, Silver Lake, and Silver Mines shares are sinking

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a sizeable decline. At the time of writing, the benchmark index is down 0.85% to 7,634.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 5% to 18.5 cents. This follows broad weakness in the lithium industry again on Monday. It’s also worth noting that last week, Goldman Sachs put a sell rating and 14 cents price target on its shares.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is down 7.5% to $3.95. This follows the release of an update on the New Zealand International Convention Centre and Hobson Street Hotel project (NZICC) and the Wellington International Airport Carpark project (WIAL Carpark). In respect to the former, the company has determined that it will make an additional provision on NZICC of NZ$165 million.

Silver Lake Resources Ltd (ASX: SLR)

The Silver Lake share price is down 13% to $1.10. Investors have not responded positively to news that the gold miner is merging with Red 5 Ltd (ASX: RED). Under the terms of the transaction, Red 5 will acquire 100% of the shares in Silver Lake and each Silver Lake shareholder will receive 3.434 Red 5 shares for every share held.

Silver Mines Ltd (ASX: SVL)

The Silver Mines share price is down 20% to 13.5 cents. This follows the completion of a placement to raise $8 million before costs. The company raised the funds at a 19.2% discount of 13.5 cents per new share. This will be used to support the development of the Bowdens Silver Project.

The post Why Core Lithium, Fletcher Building, Silver Lake, and Silver Mines shares are sinking appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs Group. 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.

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