scroll

Peninsula Energy (PEN) equity raise

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 06/09/2025

Peninsula Energy (PEN) equity raise

After a trading halt on 17 April, PEN is trading again after announcing an equity raise @30c on 22 Aug. The institutional offer is now complete and the retail offer at 1:1 closes on Tuesday 29 Sept. I note from your comments in Q&A last week that MM has no interest in PEN, however, if you held the stock, would you consider participating. It has been trading 10 to 20% above the offer price early in the week. My concern is the discount to the last traded price before the holt is >50%.

Answer

Hi David,

PEN closed at 29c on Friday, 1c or over 3% below the institutional offer price. Hence, we see no reason to catch this falling knife which cannot hold onto its raise price which was at the time a very steep discount to its last traded price – it feels like throwing good money after bad.

After PENs recent ~$70mn cap raise, at FY25 burn levels, Peninsula’s cash will last ~9 months without utilising new financing. This suggests that unless production at the Lance Project ramps up significantly in FY26, Peninsula may need further funding or cost reductions within a year.

chart

Peninsula Energy Ltd (PEN)

LAST UPDATED 05/09/2025 21:14

Latest Reports

Weekend report 06/09/2025

Weekend Q&A: US Jobs Report raises more questions than it delivers answers

The ASX200 was whacked 160-points on Wednesday after hotter-than-expected GDP figures tempered rate cut expectations, but by Friday’s close, the market had recovered over 80% of the fall. Nerves increased throughout the week into Friday night's pivotal US Job Report, but after the release, markets remained uncertain as Fed rate cuts looked a given following the weak numbers, but concerns started to percolate around the health of the US economy.

Afternoon report 05/09/2025

The Match Out: ASX grinds higher in a ‘quiet’ session

The ASX moved higher on Friday though it was one of quietest sessions in recent memory trading in a narrow ~15pt range beyond the open, with next to no news flow to drive individual share prices in the wake of the blockbuster reporting season just gone.