Boart Longyear can't explain share price spike

Drilling services provider unaware of reason for 75 per cent rise in share price.

Drilling services provider Boart Longyear (BLY) says it is not aware of any information that could explain yesterday's 75% rise in the price of its shares.

The ASX asked the mining services group to explain an increase in the volume of its shares traded, as well as a price jump that saw its shares close at 21c yesterday, up from a close of 12c the previous day and 8.7c on July 18.

Boart suggested that the recovery in its share price could be due to the absence of selling pressure, after a substantial shareholder significantly reduced its stake in recent weeks. 

Over the month to July 18, shares in Boart had collapsed from 24.5 cents to a low of 8.7 cents, according to Bloomberg data.

Boart again noted ongoing media commentary about its strategic review of recapitalisation options, after reports that it was in talks with specialist restructuring advisers.

The strategic review is ongoing and there are no material developments to report to the market, Boart said, adding it does not believe recent trading is due to speculation about its half-year results. 

The group also noted its recent confirmation that a ratings downgrade from Standard and Poor's does not affect its bank covenants. 

Boart confirmed its compliance with its continuous disclosure obligations. 

At 10.15am (AEST), Boart shares had lifted another 17.86% to 24.75c, against a benchmark index lift of 0.16%.