Why is the Anson Resources (ASX:ASN) share price down 16% in a week?

Despite plenty of news having been released by the company, the Anson Resources share price has been struggling lately.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Anson Resources Ltd (ASX: ASN) share price has been plummeting over the last 7 days.

The company has released several announcements to the ASX in that time, detailing free offers, positive assay results, and its approach to environmental, social, and governance (ESG) issues.

However, the updates haven't been enough to boost the company's stock out of its slump.

Since this time last week, the company's shares have fallen 16.3% to trade at 9.2 cents.

Let's take a look at what Anson Resources has been up to over the course of this week.

white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

What's Anson been up to this last week?

The Anson Resources share price has been struggling over the last week despite releasing 3 seemingly positive updates.

First, the company provided more details on its previously proposed bond offer. Under the offer, shareholders in the company will receive 1 bonus offer for every 10 shares they hold.

The freebie was announced last Tuesday as part of a $7.35 million placement. Though, its prospectus was released after Friday's close.

Under the prospectus, the free offer will have an exercise price of 9.1 cents and will expire on 29 October 2021.

For each option exercised, shareholders will receive another free option with an exercise price of 20 cents and an expiry date of 31 July 2023.

On Monday – the first time the market could react to the prospectus – the Anson share price fell 6.3%.

Then, on Tuesday, Anson announced assay results from stage 2 of exploration at its Yellow Cat Project. The assay results included:

  • up to 10.33% triuranium octoxide – a compound of uranium – and 25.61% vanadium oxide.

The Anson share price gained back 3.3% on the back of the assay results.

Today, it managed to recover from a poor start to trade. At the time of writing, the Anson share price is flat with its previous closing price.

This morning the company released a non-price sensitive investor presentation on its approach to ESG issues.

Anson's approach to ESG issues sees it adopting sustainable technologies, avoiding disturbing natural or historical environments, and employing local people.

Anson share price snapshot

Despite its recent slip, the Anson share price is currently 200% higher than it was at the start of 2021.

It has also gained 350% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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.

More on Resources Shares

Two miners standing together with a smile on their faces.
Resources Shares

These are the best ASX 200 mining shares to buy in March: Morgans

These mining shares are on Morgans' best ideas list in March.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Rio Tinto share price dips despite copper mega-mine milestone

Rio Tinto owns 66% of what will soon become the world's fourth-largest copper mine.

Read more »

Miner looking at his notes.
ESG

'Not sure if that's the way we should go': Why BHP shares are making news today

BHP is trialling renewable diesel made from Hydrotreated Vegetable Oil (HVO) at its Western Australian Yandi iron ore mine.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Resources Shares

Are Fortescue shares back on the menu amid job cuts?

Can cost reductions be the key to driving Fortescue ahead?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Could buying Fortescue shares at under $22 make me rich?

The iron ore miner Fortescue has seen volatility. Is it time to buy?

Read more »

Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.
Resources Shares

Sayona Mining share price dumps 6% amid lithium lows

Lithium prices have fallen to their lowest level in more than a year.

Read more »

Rede arrow on a stock market chart going down.
Resources Shares

Why are ASX 200 lithium shares falling so hard today?

The lithium carbonate price has fallen to its lowest level in more than a year.

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Resources Shares

Why is the BHP share price taking a flogging on Friday?

The commodity growth engine may not be firing on all cylinders.

Read more »