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Nickel Mines (NIC) SPP

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Nickel Mines (NIC) SPP

Hi James and Crew, What is MM's view of the recently announced NIC SPP to eligible shareholders please. Whilst it is still some time until the offer closes we will need to free up cash should we participate to the maximum. Thanks GS

Answer

Hi Geoffrey,

Firstly, we do like NIC overall and are bullish the stock.  There are a few parts to the raise which includes a $148m institutional placement, $148m non-underwritten placement to Shanghai Decent which will push their shareholding above 20% and $18m share purchase plan. The institutional placement is priced at $1.37 versus last close at $1.455 i.e. a 5.8% discount which is slim. Our Shaw analyst Andrew Hines that covers NIC was not surprised by the raise and on his numbers, NIC is trading on just 5.5x CY23 earnings.

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Nickel Mines Ltd (NIC)
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