Prior to acquiring Penny West, Spectrum Metals was a small-cap exploration company with a relatively low profile on the ASX. While exact daily share price data from mid-2018 isn’t directly provided here, reports indicate that Spectrum’s market capitalization was around A$5 million in late 2018 before significant exploration success at Penny West. Given that the company had fewer than 1 billion shares on issue at that time (a rough estimate based on later data), the share price was likely in the range of 0.5 to 1 cent per share. For instance, on April 11, 2019, it was noted that Spectrum shares last traded at 2.7 cents, capitalizing the company at A$28.5 million, implying an earlier, lower baseline before the Penny West success took off. Thus, a reasonable estimate for the share price in mid-2018, before the acquisition announcement, would be approximately 0.5 to 0.7 cents, reflecting its junior explorer status with limited market momentum.
After the Acquisition (Post-October 2018)
The acquisition of Penny West marked a turning point for Spectrum Metals, particularly as exploration results began to emerge in early 2019. The company purchased the project for A$1 million in cash and shares, a modest outlay that quickly proved transformative. By March 5, 2019, following the discovery of a high-grade zone at Penny North (150m north of the historic Penny West pit), Spectrum’s share price surged 75% in a single day, reaching 0.7 cents from a prior close of approximately 0.4 cents. This spike came after drilling results showed intersections like 8m at 23g/t gold, signaling the project’s potential.
The momentum continued throughout 2019 as Spectrum reported further high-grade intercepts. By April 30, 2019, the share price had climbed to 2.7 cents, reflecting a market cap of A$28.5 million, driven by ongoing drilling success and a A$5 million capital raise. By February 7, 2020, just before Ramelius Resources announced its takeover bid, Spectrum’s closing price was 9.9 cents. The takeover offer from Ramelius, announced on February 10, 2020, valued Spectrum shares at 15 cents each (a 52% premium to the 9.9-cent close), leading to a 36% jump that day, pushing the price to around 13.5 cents in early trading.
Summary
Before Acquisition (Mid-2018): Approximately 0.5–0.7 cents per share, based on a ~A$5 million market cap pre-discovery.
After Acquisition:
March 5, 2019: Reached 0.7 cents (up from ~0.4 cents pre-discovery announcement).
April 30, 2019: 2.7 cents, reflecting sustained exploration success.
February 7, 2020 (pre-takeover): 9.9 cents.
February 10, 2020 (post-takeover announcement): ~13.5 cents in early trade, with the offer valuing shares at 15 cents.
The acquisition of Penny West catalyzed a dramatic re-rating of Spectrum Metals’ share price, rising from a sub-1-cent level in 2018 to over 13 cents by early 2020, a more than 20-fold increase, driven by exploration success and the subsequent takeover by Ramelius. This reflects the market’s recognition of Penny West as a high-grade, game-changing asset for the junior explorer.
GG8 Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
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