Why is circa $12m a "silly amount to raise"? They desperately need cash to finalise the Elan acquisition and take on a summer drilling program, this gives them the ability to do both, with wiggle room if there are any hiccups.
Given the current mkt cap of $25m undiluted, I'm not sure what else they could do?
The drill program will firm up the resource at Elan and highlight the value of the asset, at risk of sounding like a broken record, with the Riversdale project next door and their IPO likely to get away somewhere in the vicinity of $500m mkt cap...I think the valuation gap is likely reduce over the coming 4-6 months (and hopefully it reduces significantly) when investors realise that Elan is not only a bigger resource, but higher in quality (which will come about via the drill results post summer drill campaign).
I don't see why the share price for Atrum shouldn't be 40-60c in 6 months time - the caveat to this is equity markets and market for high grade hard coking coal remaining buoyant.
There's a bright light at the end of the tunnel and with Max and the current board steering the ship, we are hopefully in a position where the company doesn't shoot itself in the foot.
I am very bullish about Atrum post this capital raise. And for those querying the raise, the alternative was going into administration.
ATU Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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