Dona Ferentes
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The placement, target $100 million, was priced at $1.03 a share, a slim 6.8 per cent discount to the last close and 13 per cent lower than the five-day volume weighted average price. It was fully underwritten.
Street Talk understands the deal was cornerstoned overnight by investors in North America and Europe, soon after Gangfeng trimmed its position via Petra Capital but kept the offtakes intact, removing the overhang on the stock.
which brings a bit of a giggle, as recent fund managers couldn't get enough:
Todd Warren - Tribeca (HOLD): That is an easier question to answer about two weeks ago. It has retraced about 25 per cent in that time. I am going to go with hold. I would rather not sit on the fence. I would have said sell two weeks ago. Given the retracement, it is a little bit more difficult. You are still pricing in quite a lot of value for non reserves or resources in the ground. There is a lot going on for this asset. It is in the right thematic, being lithium. It has an asset in Australia close to infrastructure, so a lot of things I like about it, but there are probably better opportunities within the lithium space.
Ally Selby: Okay, over to you Simon. Core Lithium, is it a buy hold or sell?
Simon Shields - Monash Investors (HOLD): No guts, no glory. I would have said hold a couple of weeks ago. I am still saying hold. I mean, I don't really have a strong view about where the lithium price is going. The fact that Core can get a project up so quickly means that there is not going to be this huge delay in bringing on capacity with very high prices years down the track. It is going to be a wild ride in the space.
Street Talk understands the deal was cornerstoned overnight by investors in North America and Europe, soon after Gangfeng trimmed its position via Petra Capital but kept the offtakes intact, removing the overhang on the stock.
which brings a bit of a giggle, as recent fund managers couldn't get enough:
Core Lithium (ASX: CXO)
Ally Selby: Next up, we have a little bit of a sexier stock. It is Core Lithium. It has completely shot the lights out over the past year. It is up 207 per cent. Todd, staying with you, is it a buy, hold or sell?Todd Warren - Tribeca (HOLD): That is an easier question to answer about two weeks ago. It has retraced about 25 per cent in that time. I am going to go with hold. I would rather not sit on the fence. I would have said sell two weeks ago. Given the retracement, it is a little bit more difficult. You are still pricing in quite a lot of value for non reserves or resources in the ground. There is a lot going on for this asset. It is in the right thematic, being lithium. It has an asset in Australia close to infrastructure, so a lot of things I like about it, but there are probably better opportunities within the lithium space.
Ally Selby: Okay, over to you Simon. Core Lithium, is it a buy hold or sell?
Simon Shields - Monash Investors (HOLD): No guts, no glory. I would have said hold a couple of weeks ago. I am still saying hold. I mean, I don't really have a strong view about where the lithium price is going. The fact that Core can get a project up so quickly means that there is not going to be this huge delay in bringing on capacity with very high prices years down the track. It is going to be a wild ride in the space.