$0.46 is not a bad raise price. $19m is a huge raise but sets them up for plenty of drilling and whatever prelim work they want to start in Vic.
I think there are mixed feelings due to the fact (if you look at that gorgeous table you've kindly reposted) there are three separate drill results to be delivered in December 2021. If the results continue the current trend, one would expect a not insignificant increase in the SP. POG is also on an uptrend.
If people are beating down NXM's door. Then I guess some people would have liked a raise late January / early February (there current cash balance probably would have provided this runway and more). That would still give the instos/pros/sophs who this is being offered to plenty of upside (as again, that table already shows a big drilling campaign lined up into April next year).
Understandably, from the other point of view, if any of the drill results aren't up to market expectations or the market tanks (which appears to be a real risk at the moment) then NXM could find them themselves struggling to raise the cash they need and/or at a significantly lower price. We've also taken any suggestion of a CR in the next 6 months off the table, which can often stymy a stocks SP.
Honestly, I like that it was at $0.46, but I probably would have preferred a $10m raise now and a $10-15m raise in another 3-6 months.
All up, I'm tipping an oversubscribed raise and the SP will push new highs shortly afterwards. Further, it sets a pretty solid floor to the SP.
The NXM team generally appears to be nailing it so I'm currently a pretty happy holder.
Here's to a quick, oversubscribed raise, continually increasing POG and stellar drill results.
Add to My Watchlist
What is My Watchlist?
