The expert team behind the 180 Markets free, easy to use platform brings you the good oil and gossip on the cream of the ASX-listers with capital raises in the works. Here’s what happened last week from August 7-11, 2023.
180 Markets co-founder and CEO Greg Lowe says the markets are taking a pause after a strong first half year of 2023.
“We are entering September and October, which are cyclically the weakest times of the year,” Lowe says.
“We need to pause for a second and take a whole perspective of what is going on in the markets and understand things feel slower right now but in the whole scheme of things its been a pretty strong year.”
Lowe says the biggest event of the week has been the annual Diggers and Dealers conference in Kalgoorlie.
He says lithium was, again, the highlight, with rare earths a close second and gold pretty much a non-event.
Fewer companies rattling the tin
180 Markets co-founder Shaun Factor says it has been a quiet week for capital raises.
“We’ve only had seven trading halts for capital raises compared to about 30 last week,” Factor says, while also noting that volume has dropped as well.
“We are waiting for another sector to heat up because there is nothing exciting out there,” he says.
Capital raises August 7-11, 2023
Swipe or scroll to reveal full table. Click headings to sort:
|Code||Company||Close price 11-8-2023||Issue Price||Attaching Options||Discount to last close||Raise Amount|
|ENT||ENTERPRISE METALS LIMITED||$ 0.004||$ 0.005||1:1 strike 0.75c expiry July 2025||20% premium||$ 250,000|
|EQR||EQ RESOURCES LIMITED||$ 0.079||$ 0.090||78m options strike 10c expiry 2 years||30% premium to the 15-day VWAP||$ 25,000,000|
|PNR||PANTORO LIMITED||$ 0.053||$ 0.060||14.30%||$ 30,000,000|
|FFF||FORBIDDEN FOODS LIMITED||$ 0.020||$ 0.020||1:1 strike 2.5c expiry 24 months||5.2% premium||$ 1,030,000|
|PEC||PERPETUAL RESOURCES LIMITED||$ 0.030||$ 0.022||0.00%||$ 1,500,000|
|KPO||KALINA POWER LIMITED||$ 0.008||Convertible note||$ 625,000|
|ADT||ADRIATIC METALS PLC||$ 3.810||$ 3.300||0.00%||$ 45,600,000|
|RSH||RESPIRI LIMITED||$ 0.034||$ 0.034||1:2 strike 6.5c expiry June 2025||19.05%||$ 900,000|
|RTR||RUMBLE RESOURCES LIMITED||$ 0.155||$ 0.135||20.60%||$ 7,000,000|
Here’s some of the cap raises that sparked the interest of 180 Markets.
Rumble Resources raising $7 million
Rumble Resources (ASX:RTR) is raising $7 million at $0.135 per share, which is a 20.6% discount.
RTR is focussed on the early stage Earaheedy Zinc-Lead project, located 110km northeast of Wiluna in WA.
The explorer declared a maiden resource for Earaheedy in April this year of 94Mt @ 3.1% Zn+Pb and 4.1g/t Ag (at a 2% Zn+Pb cutoff).
The resource places Earaheedy as one of the largest zinc sulphide discoveries globally in the past decade.
Among what RTR will use the funds for include expanding near surface deposits and to drill highgrade zones at depth.
“Rumble, like most, has had a tough 12 months, and pretty much fallen from the last year,” Factor says, noting that in 2021 the company had a solid run from from $0.10 to $0.75.
“Hopefully for people taking that up it can have a similar run,” Factor says.
Pantoro raising $30 million
Goldie Pantoro (ASX:PNR) is raising $30 million at $0.06 per share which is a 14.30% discount.
“Unfortunately, the stock is already trading under that price,” Factor says. “The reasons for the funds were additional working capital and higher than expected merger costs.”
“Whenever there is a cost blowout investors do not like that and sell down so pretty tough times for Pantoro but hopefully it recovers.”
Forbidden Foods raises $1 million
Forbidden Foods (ASX:FFF) has raised ~$1 million at $0.02 per share, which is a 5.2% premium to the last closing price prior to the raise was announced. For every share subscribed for investors also received one free attaching option exercisable at $0.025 with an expiry of 24 months.
“Forbidden Foods has become a bit of a serial raise,” Factor says, adding that the company made its IPO on August 31, 2020 at $0.20, and climbed to the high $0.30s, but since then it has not been a pleasant journey.
“Hopefully, now they can put the funds to good use,” he says.
FFF is a multi-brand food company focusing on the infant and toddler and health & wellness plant-based markets.
“Unfortunately, for stocks like this it’s not like an exciting mining company where there are a lot of exciting upcoming catalysts and it’s just a normal sort of business.”
Enterprise Metals raises $250k
Western Australian based company gold and base metals explorer Enterprise Metals (ASX:ENT) has done a small $250k raise at a premium of $0.005/share, up from the last price of $0.03 per share.
“I do remember speaking to the company when the stock was trading at $0.004 a couple of weeks ago and they were determined to get $0.005 for a placement,” he says.
Factor says the company has accepted the placement from Vulcan Development Fund, a company based in Hong Kong with Singaporean owners. Vulcan will also receive one free option for every share subscribed to purchase shares at $0.0075 expiring July 2025.
He says VDL has a track record of funding both private and public enterprises and developing resources projects.
ENT will use the funds raised to advance its exploration programs including drill testing gold targets at Doolgunna, lithium targets at Bullfinch North and base metals targets at Murchison, along with working capital.
Focus on Lithium sector
Factor says lithium is one of the most talked about mineral sector and says he is seeing a divergence of movement of stocks.
“We’re seeing a lot of the favourites out there really falling and like the rest of the market creating a frustration for investors,” he says.
“But then on the other side we have two different types of upward movers – the real ones that are performing and some of the big ones are still going up.
“Then there’s the little ones which are putting lithium projects into non-lithium stocks more like shells and the price is exploding.”
He says while most of the rapid rises are good for day and short-term traders, they’re not good for those holding on long term.
“That was a favourite and had massive volume going through and in the Covid years when traders were stuck at home was one of the darlings of the market,” Factor says.
He says similarly is Lake Resources (ASX:LKE), which has fallen even more.
“Lake hit $2.30 at the start of last year and had a massive run up but since then has been all downwards, trading as low as $0.157,” he says.
Factor says falling lithium prices are hitting producers struggling with their lithium production numbers.
On the lithium upside
Factor says Pilbara Minerals (ASX:PLS), which is one of the biggest plays in the lithium sector with a market cap of ~$16 billion, is continuing to shine.
“I do remember years ago when they were trading as low as $0.20, but they’ve held up really well and just this week are almost hitting all-time highs again,” he says.
He says Azure Minerals (ASX:AZS) is another company which is continuing to have a massive run up on great results.
“It seems like every week they just keep getting better and better results,” Factor says., noting that AZS’s market cap has risen from under $100 million recently to more than $1 billion.
“That has caused a lot of people to make good money and one thing history is teaching us in the sector is you’ve got to take profits,” he says.
Factor says he’s not saying AZS is a sell because they’ll probably have more good results but based on the highs and lows of other companies in the sector investors should consider taking profits.
WSR bounced higher and went over $0.09 recently after hitting multiple thick pegmatites at its Olga Rocks project in WA.
“That’s even below the recent placement price,” Factor says, adding that VSR has had massive falls after hitting $0.11-$0.12 after positive drilling results.
“Everyone got super excited and pushed it up but for traders you can’t hold onto these things for too long and if you make good money you’ve got to move on,” he says.
Iris Metals (ASX:IR1) is another lithium play which has got the attention of the 180 Markets team.
After being suspended for some time, the company has relisted and is backed by a couple of prominent Melbourne family offices.
On Wednesday its share price rose ~35% after announcing it had found multiple, wide, high-grade, and shallow lithium intersections at its 100% owned Beecher Project in America’s South Dakota.
Lithium Australia (ASX:LIT) this week also announced it had entered a joint development deal with major miner Mineral Resources (ASX:MIN), relating to the disruptive LieNA lithium extraction technology.
“LIT was up about 50% to 60% even more on the day and we see that so much where lithium attracts the traders,” Factor says.
At Diggers and Dealers Delta Lithium (ASX:DLI) gave a presentation where they’re Yinnetharra Lithium Project was described as “Big and very good”, a strategy that appears to have not been received particularly well.
DLI’s share price has fallen from ~$0.95 to ~$0.70 this week, which leads Factor to the conclusion that while companies are beginning to be a lot more adventurous with their word, it’s not always for the best result.
180 Markets gives investors the opportunity to bid into ASX capital raises and IPOs on its free, easy to use platform.
The company offers investors access to capital raises it has led exclusively along with those by other brokers.
This article was developed in collaboration with 180 Markets, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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