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Golden Energy assures investors after share price plunge
RELISTED Indonesian coal miner Golden Energy and Resources has come out to assure investors that the company is not aware of any news or circumstances that caused its share price plunge this week.
Golden Energy began trading on Monday after a placement was carried out to restore its public float for listing, after a reverse takeover last year. It placed out shares at S$0.67 to restore the float.
However, the stock has fallen progressively since. It fell to as low as S$0.395 today, 41 per cent below its placement price. The counter last traded at S$0.44, down four Singapore cents.
Golden Energy said that it is a low-cost mining producer with large reserves and a strong operating track record. It said that it has a strong balance sheet with low gearing, and an experienced and committed management team to drive growth. It also highlighted the surge in global coal prices since June, and how Indonesian President Joko Widodo's 35GW electricity project will further drive domestic demand for coal.