Kagara's shares plunged by the most on record after the base metal miner cut its production target and said it will sell its nickel mining operations.
The stock fell as much as 40 per cent to 18.5 Australian cents, the biggest drop since it went public in 1999, on the first day of trade after a four-day suspension. Kim Robinson, chairman since the company listed, resigned from the position today while remaining on the board.
Kagara, which reported a net loss to $48.9 million in the half ended December 31, yesterday lowered its forecast for zinc and copper production for the current year, suspended development of an underground mine and halted exploration activities in North Queensland, which will result in 130 job cuts. It also sold its nickel assets to Western Areas for $68 million.
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The company last traded at 19.5 cents, giving it a market value of $159.8 million. It has declined 71 per cent in the past year and is the worst performer on the benchmark S&P/ASX 200 index this year.
