REZ Denies Undisclosed Info as Share Price and Volume Spike Raises Questions
Resources & Energy Group Ltd (REZ) has clarified recent trading activity in its shares, attributing the surge to a significant rise in gold prices rather than undisclosed information. The company remains focused on its Maranoa gold recovery program, with further results pending.
- REZ denies any undisclosed price-sensitive information influencing recent trading
- Share price rose from $0.024 to $0.036 between 10 and 14 January 2025
- Trading volume significantly increased alongside price movement
- Gold price increase of 20% since April 2024 cited as key driver
- Company confirms compliance with ASX Listing Rules and continuous disclosure obligations
Context of the ASX Price Query
On 14 January 2025, the Australian Securities Exchange (ASX) issued a price query to Resources & Energy Group Ltd (REZ) following a notable rise in its share price and trading volume. The stock climbed from a low of $0.024 on 10 January to a high of $0.036 by 14 January, accompanied by a surge in trading activity. ASX sought clarification on whether REZ was aware of any undisclosed information that could explain this market movement.
REZ’s Response: No Undisclosed Information
REZ responded promptly, confirming that it was not aware of any price-sensitive information that had not been announced to the market. The company reiterated its ongoing commitment to the trial gold recovery program at the Maranoa prospect in East Menzies, with previous updates provided in October and November 2024. REZ indicated that further announcements would be made once the trial results are fully determined.
Gold Price as the Primary Market Driver
In explaining the recent trading activity, REZ pointed to the substantial increase in the Australian dollar gold price, which rose approximately 20% from A$3,600 per ounce in April 2024 to A$4,300 per ounce by mid-January 2025. This rise has enhanced the expected returns from the Maranoa program, providing a plausible rationale for the heightened investor interest and share price appreciation.
Compliance and Market Confidence
REZ confirmed full compliance with ASX Listing Rules, particularly Listing Rule 3.1 concerning continuous disclosure. The company’s Managing Director, J. Daniel Moore, affirmed that the responses were authorised by the board in line with the company’s disclosure policy. This transparency is critical in maintaining investor confidence amid volatile market conditions.
Looking Ahead: Monitoring Maranoa and Market Dynamics
While REZ’s explanation centers on external market factors, the absence of new operational updates leaves some uncertainty about the near-term trajectory of the Maranoa project. Investors will be keenly awaiting forthcoming results from the gold recovery trial, which could materially influence the company’s valuation and strategic direction. Additionally, ongoing fluctuations in gold prices will remain a key variable impacting REZ’s market performance.
Bottom Line?
REZ’s share price rally reflects gold market optimism, but upcoming trial results will be the true test for investors.
Questions in the middle?
- When will REZ release detailed results from the Maranoa gold recovery trial?
- How sustainable is the current gold price rally, and what impact will it have on REZ’s valuation?
- Could there be operational or strategic developments at Maranoa that have yet to be disclosed?
