SVM - Sovereign Metals

[craigj]

Yeah Broke through 90 today With an aggressive buyer wanting 93.5 on close

 

[Sean K]

This testwork just goes on and on. I thought they would have established some time ago that this was good for whatever graphite is used for.

 

[Sean K]

Nice break up, hopefully now support.

I'm not sure why RIO have been sitting on their hands with this. They've been on the inside for about a year and could have bought it outright for half the price compared to now. Has made me wonder what was wrong, but it keeps going up.

 

[Sean K]

Wasn't expecting a CR until after they'd put out the updated MRE and a couple of other things due this Q. They had $34m at the end of the last Q. Maybe they've taken advantage of the recent run up in price. Will be interesting to see the terms and what RIO do. I guess they'll participate to keep their 19.9% holdings. Hopefully not too much of a discount to the current price.

 

[Sean K]

 

[Sean K]

So, securities issued on 2 April. 85c. I suppose it goes back to 85c and I can buy some more at the issue price. Or, maybe it's one of those rare issuances where it's seen a great play and it stays steady. I doubt that. I think everyone thinks RIO has their back. No word that RIO is going to participate and keep their 19.9 which is odd. If they were I would have thought they'd say so, it's important.

 

[Dona Ferentes]

SK seems to have this covered

Company notes today’s media speculation including an article in the Australian Financial Review on Monday 24 March 2025 in respect of a potential capital raising by the Company. The Company confirms that it has engaged Petra Capital as Lead Manager and Sole Bookrunner to raise A$40m via a placement at A$0.85 per share. Funds raised will be applied to the Kasiya Rutile Graphite Project’s development costs including permitting, studies and other costs and working capital and offer costs.
There can be no certainty that the Fundraise will complete, nor as to the final structure or terms of any such Fundraise. The Company’s shares on the Australian Securities Exchange will continue to be in a voluntary trading halt until the earlier of an announcement to the market regarding the results of the capital raising or the opening of trade on ASX on Wednesday, 26 March 2025.
.
Received firm commitments for a placement of 47,058,824 new fully paid ordinary shares at an issue price of A$0.85 per share
.
& back trading ..and underwater

.

 

[finicky]

Malawi - yuck - we know how these African states solve their fiscal and grift needs once western colonisers and exploiters have invested and tied up capital.

Malawi faces significant sovereign risks, including a fragile economy heavily reliant on agriculture, high poverty rates, and vulnerability to climate change, alongside challenges like corruption and weak infrastructure, all contributing to a high-risk environment for businesses and investors.
Here's a more detailed breakdown of Malawi's sovereign risks:
Economic Challenges:
Dependence on Agriculture:
Malawi's economy is heavily reliant on agriculture, making it vulnerable to climatic hazards, low productivity, and fluctuations in input prices.
High Poverty Rates:
A significant portion of the population lives below the poverty line, with 70% living below the USD 2.15 a day threshold in 2023.
Food Insecurity:
Malawi faces food insecurity due to factors like low productivity and climate change, impacting the population's well-being.

• Weak Infrastructure:
  Deficient infrastructure, including water, energy, transport, education, and healthcare, hinders economic development and business operations.
  
  
• High Debt:
  Malawi has a heavy public debt burden, fueled by high deficits and reliance on borrowing to balance budgets.
  
  
• Low Foreign Exchange Reserves:
  The country struggles with low foreign exchange reserves, which are further strained by a trade deficit in goods and services.
  
  
• Inflation:
  Malawi has experienced high inflation rates, driven by food prices, the war in Ukraine, and currency realignments.
  
  
• Climate Change Vulnerability:
  Malawi is highly vulnerable to climate change and natural disasters, which can severely impact agriculture and the economy.

Political and Governance Challenges:
Corruption:
Widespread corruption is a major issue in Malawi, affecting businesses and hindering economic development.
Political Instability:
Malawi faces some political instability, with protests against economic conditions and potential shifts in government support.
Weak Enforcement of Laws:
Enforcement of laws, including anti-corruption laws, is weak, leading to impunity for some officials.
Bureaucracy:
Complex and often confusing bureaucratic processes can be an impediment to investment.
Business Environment Risks:
High Business Costs:
Malawi has high transportation costs and limited infrastructure, which increases the cost of doing business.
Lack of Enforcement of Trademark Laws:
There is a lack of adequate enforcement of trademark laws, which can lead to counterfeiting and intellectual property theft.
Crime and Civil Unrest:
Malawi experiences crime, including violent crime, which poses a risk to businesses and individuals.
Limited Regional Connectivity:
Limited infrastructure and regional connectivity further hinder business operations and trade.

• Complex and often confusing bureaucratic processes can be an impediment to investment.

Business Environment Risks:

• High Business Costs:
  Malawi has high transportation costs and limited infrastructure, which increases the cost of doing business.
  
  
• Lack of Enforcement of Trademark Laws:
  There is a lack of adequate enforcement of trademark laws, which can lead to counterfeiting and intellectual property theft.
  
  
• Crime and Civil Unrest:
  Malawi experiences crime, including violent crime, which poses a risk to businesses and individuals.
  
  
• Limited Regional Connectivity:
  Limited infrastructure and regional connectivity further hinder business operations and trade.

 

[Sean K]

Malawi - yuck - we know how these African states solve their fiscal and grift needs once western colonisers and exploiters have invested and tied up capital.

Malawi faces significant sovereign risks, including a fragile economy heavily reliant on agriculture, high poverty rates, and vulnerability to climate change, alongside challenges like corruption and weak infrastructure, all contributing to a high-risk environment for businesses and investors.
Here's a more detailed breakdown of Malawi's sovereign risks:
Economic Challenges:
Dependence on Agriculture:
Malawi's economy is heavily reliant on agriculture, making it vulnerable to climatic hazards, low productivity, and fluctuations in input prices.
High Poverty Rates:
A significant portion of the population lives below the poverty line, with 70% living below the USD 2.15 a day threshold in 2023.
Food Insecurity:
Malawi faces food insecurity due to factors like low productivity and climate change, impacting the population's well-being.

• Weak Infrastructure:
  Deficient infrastructure, including water, energy, transport, education, and healthcare, hinders economic development and business operations.
  
  
• High Debt:
  Malawi has a heavy public debt burden, fueled by high deficits and reliance on borrowing to balance budgets.
  
  
• Low Foreign Exchange Reserves:
  The country struggles with low foreign exchange reserves, which are further strained by a trade deficit in goods and services.
  
  
• Inflation:
  Malawi has experienced high inflation rates, driven by food prices, the war in Ukraine, and currency realignments.
  
  
• Climate Change Vulnerability:
  Malawi is highly vulnerable to climate change and natural disasters, which can severely impact agriculture and the economy.

Political and Governance Challenges:
Corruption:
Widespread corruption is a major issue in Malawi, affecting businesses and hindering economic development.
Political Instability:
Malawi faces some political instability, with protests against economic conditions and potential shifts in government support.
Weak Enforcement of Laws:
Enforcement of laws, including anti-corruption laws, is weak, leading to impunity for some officials.
Bureaucracy:
Complex and often confusing bureaucratic processes can be an impediment to investment.
Business Environment Risks:
High Business Costs:
Malawi has high transportation costs and limited infrastructure, which increases the cost of doing business.
Lack of Enforcement of Trademark Laws:
There is a lack of adequate enforcement of trademark laws, which can lead to counterfeiting and intellectual property theft.
Crime and Civil Unrest:
Malawi experiences crime, including violent crime, which poses a risk to businesses and individuals.
Limited Regional Connectivity:
Limited infrastructure and regional connectivity further hinder business operations and trade.

• Complex and often confusing bureaucratic processes can be an impediment to investment.

Business Environment Risks:

• High Business Costs:
  Malawi has high transportation costs and limited infrastructure, which increases the cost of doing business.
  
  
• Lack of Enforcement of Trademark Laws:
  There is a lack of adequate enforcement of trademark laws, which can lead to counterfeiting and intellectual property theft.
  
  
• Crime and Civil Unrest:
  Malawi experiences crime, including violent crime, which poses a risk to businesses and individuals.
  
  
• Limited Regional Connectivity:
  Limited infrastructure and regional connectivity further hinder business operations and trade.

Is that Malawi, or Victoria?

 

[peter2]

Not holding, but yikes, another capital raise at a discount, slashing current shareholder value.

40M at 0.85 I really dislike seeing newly raised capital being used for general working capital.