ASX raises questions as Terracom shares plunge
More questions are being asked of Queensland coal company Terracom as its share price continued to slide.
The company's share price had soared over $1 earlier this year when coal prices were at record highs.
The company’s share have halved this year and the ASX issued a please explain to the company following heavy volumes in recent days when the price slid from 65.5 cents to a low of 53 cents on volume of about 15 million, significantly higher than normal trade.
Terracom said it was not aware of anything concerning the company that had not been disclosed to the market.
The company’s share price had soared over $1 earlier this year when coal prices were at record highs.
However, the company’s Blair Athol mine has been impacted by heavy rain this year and Terracom revealed in March that ASIC had sued it and several current and former executives and directors.
The action includes chair Wal King along with managing director Danny McCarthy and chief financial officer Nathan Bloom and former deputy chair Craig Ransley.
“The case concerns the conduct of Terracom and its directors and officers following whistleblower allegations made by a former employee that Terracom had been involved in falsification of coal quality results,” ASIC said.
It is the first time ASIC had taken action for alleged breaches of the whistleblower provisions.
Terracom shares lost more ground on Friday with a fall of 1 cent.
