Greatland Resources issued query by the ASX after its July downgrade that erased investor smiles
The gold miner's share price had been riding as high as $7.80 following a stellar start to life as an Australian Securities Exchange-listed company at the end of June. This followed an initial public offering at $6.60.
But those gains would be obliterated when Greatland downgraded production guidance from its Telfer mine in WA's north for the 2026 financial year. Its stock plummeted 24 per cent on July 29 to finish the day's trade at $5.24.
Greatland had already faced accusations Australia's corporate cop was on its back about the downgrade, an accusation which the company has so far rejected, when on Friday the ASX published a 'please explain' letter.
Greatland had a production target for financial year 2026 of between 300,000 ounces and 340,000oz of gold in its prospectus to list on the ASX, which was cut to between 260,000oz and 310,000oz on July 29.
A higher all-in sustaining cost forecast was also flagged July 29 — from a range of $2,400/oz and $2,600/oz to $2,400/oz and $2,800/oz.
The ASX grilled Greatland over whether anyone knew the surprise downgrade was coming at the time of its listing.
'The updated production target was not determined until after a meeting of the company's board of directors, which was held after market close on 28 July 2025 to approve the FY26 budget,' Greatland stated in response.
'The updated production target was finalised after the board meeting and announced on 29 July 2025 in the company's June 2025 quarterly report.'
On costs, Greatland said it believed the band increase was not 'material'.
'The company did not consider that a reasonable person would expect the updated cost guidance Information to have a material effect on the price or value of its securities, given the difference in the mid-points of the AISC forecast ranges only increased by approximately 4 per cent.'
Greatland is backed by Fortescue heavyweights including Andrew and Nicola Forrest, Elizabeth Gaines and Mark Barnaba.
The ASX sent the letter to Greatland a day after Australian Financial Review's Street Talk column reported that the Australian Securities and Investments Commission had been asking questions about what the company and its advisers knew at the time of the float.
Taking questions from media at Diggers & Dealers on Tuesday about whether ASIC had spoken to the Greatland, Mr Day said: 'We weren't contacted to comment on that. If we had been, we would have said no.'
An ASIC spokeswoman declined to comment when asked by The West Australian there had been any kind of engagement with Greatland.
Asked more about the downgrade and the market's reaction, Mr Day kept things brief.
'I respect the market, but what we what we focused on was just making sure that we gave a clear update, and we're really confident that we can achieve that update.'
Greatland shares are yet to recover from the July 29 bloodbath — they traded at $5.21 each by 12.50pm.
The formerly London-based company, which has a market capitalisation of about $3.5b, bought its flagship Telfer mine and the neighbouring Havieron project for up to $US475m from Newmont Corporation in September.
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