Minerals 260 Shares Slide 8.5% as Gold Stocks Retreat, Giving Back Gains From Bullabulling Bank Funding Deal

SYDNEY — Shares of Minerals 260 Ltd. fell more than 8% on Thursday, giving back a rally from the previous session. The gold developer had secured bank funding for its Bullabulling project in Western Australia.

Minerals 260 shares closed down 7.5 Australian cents, or 8.52%, at A$0.805. The stock traded between A$0.80 and A$0.90, with about 8.86 million shares changing hands. Its market value stood at about A$2.1 billion.

The decline came as gold and lithium stocks traded broadly lower after a weak overnight session for commodity prices, according to Market Index. No new announcement from the company explaining the fall had been identified.

The broader S&P/ASX 200 index closed 0.35% lower.

Wednesday's rally

On Wednesday, Minerals 260 shares jumped more than 8% to about 92 cents, even as other gold stocks fell. The rally followed news that the company had locked in funding for Bullabulling.

A syndicate of banks agreed to provide A$335 million in project finance and A$75 million in working capital. The lenders are ANZ Group Holdings, National Australia Bank and Societe Generale.

The company also had A$530 million in cash at the end of the September quarter.

Thursday's drop suggests some investors took profits after the rally.

Major gold project

Minerals 260 describes Bullabulling as the "largest undeveloped gold project in Australia which is not owned by an existing producer."

The project has an estimated build cost of A$855 million and an expected mine life of 19 years. Its prefeasibility study estimated an all-in sustaining cost of A$2,627 per ounce.

Four of seven major approvals are secured, and the other three are under assessment. Construction of a mine village began on site in May.

The company plans to complete a definitive feasibility study and then make a final investment decision in the first quarter of 2027.

Bell Potter said in a research note released Oct. 28 that the company was heading into a "catalyst rich" period over the next six to nine months. The broker has a 12-month price target of A$1.45 on the stock.

Strong year

Despite Thursday's decline, Minerals 260 shares are up about 173% over the past year, making it one of the ASX's strongest performers. The stock traded close to its 12-month high of A$1 earlier this week.

The company was originally formed as a wholly owned subsidiary of lithium miner Liontown Resources, to spin out exploration assets.

Gold prices have been volatile this year. Gold surged to a peak of about US$5,598 an ounce in late January before pulling back, and was still down about 4.5% year to date in early November, according to Market Index.

This article is for informational purposes only and does not constitute investment advice.