PLS at the end of last quarter show cash and equivalents of $63.5 million and estimate cash outflows for this quarter are $66 million.
Their market cap is high and the market knows it too having pulled back to 45c. Their market cap is $300 million more than Galaxy. Sooner rather than later might be a good time for a capital raising. Maybe they should squeeze as much from the market as possible in the region of $150 to $200 million and get on with keeping themselves afloat and producing well. It would then mean that they wouldn't need to sell down almost 50%. I think their market cap is their biggest value unlocking asset for them.
Oh
@Thesi look what I found! - Pilbara ended up taking your advice, but unfortunately waited till they are down to 35c and it became more obvious to the market.
Just need to announce it now right?
Do yer thunk Galaxy will take part?
Macquarie crosses funds for Pilbara Minerals raising
Sarah Thompson and
Anthony Macdonald
Aug 28, 2019 — 9.31pm
There's more than one way to raise funds - just ask ASX-listed lithium play Pilbara Minerals.
Only two days after telling shareholders it had been
unable to find a buyer at an acceptable price for a half stake in its flagship Pilgangoora project, the $650 million Pilbara Minerals is expected to be cap in hand in front of investors with an equity raising.
It is understood Pilbara Minerals' broker Macquarie Capital was seeking early backers on Wednesday night, ahead of the deal's launch.
Pilbara Minerals is expected to ask for about $60 million via a placement of new shares. It's understood to be slated to launch as early as Thursday, which means the funds could be in Pilbara Minerals' bank account by the weekend.
Fund managers are tipping a deal at about 30¢ share. The stock closed at 35¢ on Wednesday.
Funds raised are expected to help top up the miner's cash balance.
It had $63.6 million in the bank as at June 30 and Credit Suisse analysts reckon that balance could be down to $35 million at the end of next month, even after management's efforts to reduce the cash burn. Low lithium prices also mean it would be hard to build up cash levels from its mining activities, assuming customers had been wanting to take the stock.
Should the raising come as expected, it'll be a quick pivot for Pilbara Minerals and its bankers at Macquarie who pulled the stake sale on valuation grounds.
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