Pinned straw:
Yeah, I can see why you'd be frustrated there @Parko5 , raising this amount at 16 cps - being a 15.8% discount to where they closed yesterday and the day before (19 cps) - is a hefty discount, and they haven't yet made the FID for Nolans - that is mentioned in their announcement at the fourth dot point on page 1: "The Capital Raising is expected to support advancement of the Company’s funding initiatives and provides a sufficient cash runway through to mid-2025 to allow the Company to focus on finalising its strategic equity funding and offtake initiatives required for FID."
Sounds like patience will be required here, and they might go lower before they go higher. Gina will be playing the long game as she usually does. She won't care too much what the SP does in the short term. It would take something out of left field, IMO, for the FID to not be a "Yes" when it is finally decided, or substantially lower RE prices (particularly for the basket of rare earths at Nolans) as there's some serious smart money already in this one, so I think it's going to get developed, but the timeframe could test ordinary retail shareholders' patience.
In today's (free) "Director's Special" newsletter from "Money of Mine":
- Arafura launched a fully underwritten two-tranche $20m placement and $7m SPP to fund development of its Nolans rare earth project (ARU)
"A gargantuan task getting the debt firmed-up but the equity ain’t gonna be easy"
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A goldie I hold in my super (and here on SM) is also raising capital:
- Bellevue raising up to $175m at $1.55 via an underwritten Insto placement ($150m) and a non-underwritten SPP ($25m) to partially repay debt and accelerate growth (BGL).
- The offer price of A$1.55 represents a 15.3% discount to the last traded price of A$1.83 on 24 July 2024 (yesterday) and a 14.5% discount to the 5 day volume weighted average price (VWAP) of A$1.81.
- It seems that BGL waited until the market was confident that they didn't need to do a CR and the share price rerated higher and then they did one. Unfortunately Bellevue's management has form for that sort of behaviour which is good (they raise at higher prices, despite the big discount in the offer price) and bad (management are sneaky - they say they don't NEED to raise - "we are fully funded through to... " ...and then they raise anyway).
Different type of frustration, but at least Bellevue do have revenue, so they are producers, not developers, so there's that. And it's gold, not rare earths, so there's that...