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Australian Strategic Metals Ltd (ASM)

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Question asked 23/01/2026

Australian Strategic Metals Ltd (ASM)

Hi James & Team ASM has increase by 130% + this week. Can I have your view on Energy Fuels offer to acquire Australian Strategic Materials. " Under the Scheme, eligible ASM shareholders will be entitled to receive: 0.053 Energy Fuels shares or CHESS Depositary Interests for each ASM share held (representing implied value of A$1.47 per ASM Share) and A$0.13 in cash per ASM Share, payable as an unfranked special dividend by ASM. The transaction structure implies an ASM equity value of ~A$1.60 per ASM Share." Would you hold on to ASM and accept the offer of Energy Fuels CHESS Depositary's? or sell your ASM shares into the current strength? ASM shares are trading $1.85 today. regards Debbie

Answer

Hi Debbie,

On first glance this feels like a “get out of jail free” card for Australian Strategic Metals Ltd (ASM) shareholders with the stock down more than 80% from its 2021 high but rare earths are hot today, on the right day more so than gold! However, ASM has accepted the takeover offer in principle — the company’s board has recommended the deal, and a binding agreement is in place — but the acquisition is not yet finalised until shareholders vote, and regulators sign off later in 2026.

Usually, we would grab Fridays $1.85, but the price clearly suggests the vote might go against the bid and buyers are hoping for Energy Fuels be forced to pay a higher price. It’s hard to know, so if we were long we would be inclined to sell some and hold the balance to wait and see.

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Australian Strategic Metals Ltd (ASM)

LAST UPDATED 23/01/2026 12:13

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