Thoughts on Evolution (EVN) SPP
Hi Team, Seasons greetings! With MM planning to lighten gold into 2024 please comment on MM's action plan for the announced SPP@$3.80 John
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Answer
Hi John,
The crux of the EVN SPP after its December raise is below with the stock now trading ~$3.15, however, under the SPP terms, stock will be issued at a 2.5% discount to the 5-day volume-weighted average price (VWAP) of shares traded on the ASX up to, and including, the SPP Closing Date, which has been extended to 30th Jan (was 16th Jan initiall).
We recently increased our EVN holding from 3% to 5% at ~$3, hence we are only likely to participate if the VWAP calculation works out to be greater than a 5% benefit, so at this stage, it’s probably unlikely. We have the Managing Director in next week, so will update you if this view changes post meeting.
