15M new shares issued and company advised this will represent 13% of total shares on issue when completed.
i.e. total shares on issue = 15,000,000 / 0.13 = 115,384,615
Market cap = (15,000,000 x 0.55) + (100,384,615 x 0.34) = $42,380,769
av/pps = 42,380,769 / 115,384,615 = $0.36
So the premium of the new shares issued is offset by the dilution plus the fact that the new shares only represent 13% of shares on issue.
All up, we get ~6% increase in fair value so currently undervalued 6%, not including any positive upside from scoping study, which is obviously possible.
LML Price at posting:
33.1¢ Sentiment: None Disclosure: Not Held
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