Lotus Resources SPP
Enjoy reading your Insights guys, thanks. Could I have your thoughts on the LOT SPP? They're saying it'll fully fund the accelerated restart of their Kayelekera Uranium Project". Is it worth taking up @ 25c?
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Answer
Hi Simon,
LOT are looking to raise $15mn via a SPP at 25c as part of a wider $130mn raise with the proceeds from the raise used to advance the restart of the Kayelekera project in Malawi, working capital requirements and general corporate purposes. We have a couple of concerns here:
- The stocks trading at 24c so why pay 25c in the SPP.
- The companies market cap is only $500mn making this a huge relative raise.
- Other quality stocks in the sector appear better value having endured a tough few months.
