Why Champion Iron, Core Lithium, Metcash, and West African shares are sinking

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.75% to 7,569.7 points.

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

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is down 6% to $6.22. This morning, the iron ore miner announced that unionised employees voted against the company’s proposed terms towards a new collective bargaining agreement and voted in favour of a strike action mandate. Unionised employees represent 63% of its workforce at the Bloom Lake mine. The strike mandate enables these workers to initiate a strike if the ongoing discussions do not conclude in a new agreement.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down a further 3% to 18 cents. This is despite there being no news out of the lithium miner. However, it is worth noting that most lithium shares are falling again on Tuesday. In addition, last week Goldman Sachs put a sell rating and 14 cents price target on its shares.

Metcash Limited (ASX: MTS)

The Metcash share price is down 2% to $3.57. This follows the completion of the wholesale distributor’s $300 million fully underwritten institutional placement. These funds were raised at $3.35 per new Metcash share, which represents an 8% discount to its last close price. The proceeds will be used to partly fund the acquisition of Superior Food for an enterprise value of up to $412.3 million.

West African Resources Ltd (ASX: WAF)

The West African share price is down almost 14% to 81.2 cents. This follows the release of the gold miner’s guidance this morning. Unfortunately, it is guiding to lower production and higher costs in 2024. In respect to the former, the company expects to produce 190,000 to 210,000 ounces of gold this year. This will be down from 226,823 ounces in 2023.

The post Why Champion Iron, Core Lithium, Metcash, and West African shares are sinking appeared first on The Motley Fool Australia.

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More reading

• Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows
• Guess which ASX 200 gold stock is crashing 15% on a disappointing update
• These 3 ASX 200 shares just got some big broker upgrades!
• Why are Metcash shares tumbling today?
• Why Core Lithium, Fletcher Building, Silver Lake, and Silver Mines shares are sinking

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 recommended Metcash. 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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