Mustang plummets after failed auction

Shares in Mustang Resources fell 56 per cent today as the Perth-based miner of rubies in Mozambique resumed trading.

Over the weekend, an auction of the company's rubies in Mauritius disappointed both buyers and the miner, with 13 of the 21 bid schedules failing to reach the reserve price.

The market reaction was in part driven by the company's decision to delay a planned plant upgrade to concentrate on building inventory for the next auction planned mid next year.

Mustang shares closed at 4.6 cents.