I really believe BellPotter got Mumbwa and BTRs style all wrong. BellPotter need to study BTR a little deeper and review their analysis IMO.
BellPotter have a valuation of 12 month target $2.11/sh
Yet they are factoring a $1.30/sh ($40m) in the 12 months ahead? A capital raising at 40% discount to there forecast SP of $2.11 will have a massive dillution effect to long term holders and Scott has clearly said he is out to protect and return SP back to original share holder value (lets say $3.50 average). Scott & BTR know what they are doing and are certainly not DESPERATE to go to the market and dillute the SP. We clearly saw this when Glengore paid a 20% premium to BTRs VWAP to help out with Perkoa and inject funds into BTR.
IMO I truelly believe as Glencore want a first bite at Mumbwa that there will be a future negotiation for Glencore to take another position in BTR with a VWAP and % premium over this.
Therefore valuation should prove better than what BellPotter's thesis has tabled imo.
BTR Price at posting:
$1.22 Sentiment: LT Buy Disclosure: Held
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