In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.55% to 8,912.2 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are tumbling:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk Company share price is down almost 15% to $7.90. Investors have been selling the infant formula company's shares after it downgraded its guidance for FY 2026 due to supply chain disruptions. A2 Milk now expects revenue growth in the low to mid double-digit range, which is down from its previous guidance of mid double-digit growth. Furthermore, its EBITDA margins are now expected to be between 14% and 14.5% in FY 2026. This is down from its prior guidance of 15.5% to 16%. In light of this, the company's net profit after tax is now expected to be similar to or lower than in FY 2025. Another negative is that cash conversion is expected to fall significantly to around 50%. This is down from prior expectations of 80% for the financial year.
Metallium Ltd (ASX: MTM)
The Metallium share price is down 4% to 61 cents. This morning, the metals recovery company released its quarterly update and reported an operating cash outflow of $5.7 million and an investing activities outflow of $15.2 million. However, thanks to a $75 million capital raising, the company finished the period with cash and equivalents of $82 million.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price is down 3.5% to $23.60. Investors have been selling Northern Star and other ASX gold stocks on Monday after the gold price pulled back following the failure of peace talks between the US and Iran. And with the US now threatening to blockade Iranian ports, causing oil prices to surge beyond US$100 a barrel again, there are concerns that inflation could rise and lead to interest rate hikes. The latter is seen as a negative for gold.
St Barbara Ltd (ASX: SBM)
The St Barbara share price is down 3% to 70.2 cents. Not even the release of this gold miner's quarterly update this morning has been able to offset weakness in the gold industry. St Barbara reported a 49% jump in gold production to 13,522 ounces. This underpinned gold sales of 11,974 ounces at an average sale price of A$6,892 per ounce. The company has not finalised its all-in sustaining costs for the third quarter. However, it revealed that it expects a fourth-quarter AISC in the range of $4,100 to $4,500 per ounce.
The post Why A2 Milk, Metallium, Northern Star, and St Barbara shares are sinking today appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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