Why these ASX 200 shares dropped today?

Key Takeaways:

1. ASX 200 ended lower today with a more than 1% drop in the index value.

2. Except for the energy sector, other sectors ended lower on ASX.

3. SFR, EVN, and MP1 were on the list of the top losers on ASX 200.

The benchmark index ASX 200 ended lower on 20 October 2022, with over a 1% drop in its value. Other than the energy sector, all the other 10 sectors ended lower today, driven by the performance of the players within the respective sectors along with the ongoing geopolitical developments.

Do Read: ASX 200 Closed Lower By 1.02%; Dragged Down By IT and Materials Sectors

Also, in October 2022, many ASX-listed companies have started posting quarterly results, which is also one factor driving a particular company’s share price.

On 20 October 2022, Megaport, Sandfire Resources, and Evolution Mining were three companies in the list of top twenty losers on ASX. In this article, we will see their recent developments and see what factors have influenced their share price today.

Sandfire Resources (ASX: SFR)

Sandfire Resources was the top loser today on ASX 200, with a significant drop of ~12.7% in its share price. SFR shares settled at AU$3.300 on 20 October 2022.

Sandfire Resources is a copper and base metal producer and explorer. The Company operates within the material sector, which dropped 2.43% on 20 October 2022. The Company’s shares were impacted despite strong quarterly results.

• Group FY2023 guidance improved to 83-91kt Cu, 78-83kt Zn, 6-10kt Pb, 12-14koz Au, and 2.2- 3.2Moz Ag at a C1 unit cost of approx. US$1.72/lb Cu.
• The Company reported strong performance from MATSA Copper Operations (MATSA) in Spain.
• SFR completed underground mining at the DeGrussa Operations following Quarter-end. The processing of transitional stockpiles and mineralised waste stockpiles will begin following final sulphide processing around the conclusion of October 2022.
• By the end of the quarter, the Company had net cash of US$189.8 million and net debt of US$374.7 million (excluding capitalised transaction costs), subsequent MATSA, and Corporate Facility repayments.

Megaport Limited (ASX: MP1)

Megaport Limited shares dropped 11.8% on 20 October 2022. MP1 shares dropped consistently in the last two days and have reached a price level that existed during 05 July 2022. Megaport Limited is the global leading provider of Elastic Interconnection services.

MP1 belongs to the software and services industry group. On 20 October 2022, the Information Technology sector was the top loser, with a 3.76% drop in the index value.

Another factor influencing MP1 shares today was the drop in its cash balance. In Q1 FY2021, the closing cash balance stood at AU$114.2 million, which declined to AU$69.4 million in Q1 FY2022. There was a drop in the installed data centre from 423 in June 2022 quarter to 422 in September 2022 quarter. Also, underlying growth in Monthly Recurring Revenue decreased from AU$0.637 million in September 2022 quarter.

Evolution Mining (ASX: EVN)

Evolution Mining was the fourth worst performer on ASX 200 on 20 October 2022. Its shares slipped 7.960% on ASX post the release of its September 2022 quarterly results. The Company highlighted that Mt Rawdon experienced heavy rain, which impacted production by approx. 6,500 ounces. The softening of the gold prices also influenced the stock price today.

Compared to June 2022 quarter, Evolution mining reported a drop in gold production from 172,722 in June 2022 quarter to 161,098 in September 2022 quarter. It also noted a drop in copper production from 15,301 June 2022 quarter to 14,469 in September 2022 quarter. AISC cost also increased from $1,290/oz to $1,513/oz.

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