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Shares of ASX miner Perenti plummet 10% after “security incident”

Kenneth Hall
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The Perenti Global Ltd (ASX: PRN), formerly Ausdrill Ltd, share price is down more than 10% this morning after a security incident near a key African drilling site.

What did Perenti announce this morning?

The Perenti share price could faller lower after reporting a “security incident” near Semafo‘s Bongou mine site in Burkina Faso.

Semafo is a Canadian-based intermediate gold producer, which is partnering with Perenti in the African nation.

The Bongou Mine is one of two Semafo mines that has been in commercial production since September 2018.

A convoy, escorted by military police, came under attack in the African country. Perenti confirmed that members of its African Mining Services workforce were involved in the incident.

The Aussie drilling group has reported fatalities and injuries, but is still working to confirm details with local authorities.

International media is reporting at least 37 dead and more than 60 wounded in the devastating convoy attack. The Perenti share price could continue to come under pressure in early trade following today’s tragic news out of Burkina Faso.

Perenti shares climbed higher in 2016 when it received a Letter of Intent and subsequently awarded the contract for the Boungou mine by Semafo.

How has the Perenti share price performed in 2019?

Perenti shares have rocketed 106.19% higher since the start of 2019 to their pre-market open price of $2.33 per share. However, this morning’s announcement represents the first made by the newly rebranded entity and early trade has seen its share price plunge more than 10% in response.

The Perenti share price has surged higher on strong earnings in February and August 2019. Perenti posted a 14.2% increase in pro-forma revenue to $1.97 billion as net profit before intangible amortisation more than doubled to $103.1 million.

Perenti currently boasts a market cap of $1.6 billion with a dividend yield of 2.97% following a successful year of trade on the ASX in 2019.

The post Shares of ASX miner Perenti plummet 10% after “security incident” appeared first on Motley Fool Australia.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019