Was reading over State One Stockbroking Research Note at the weekend http://www.kibaranresources.com.au/irm/PDF/1839/StateOneStockbrokingResearchNote
Pre-production Target Price of 50c/share & MCap 163m.
They assume finance achieved with 25% equity which is raised post finance FY17 at 22.5c pprox. a month before production commences.
My question - Am I interpreting it wrong or are they actually stating that following an ann confirming 75% finance we will raise $25m at 22.5c just before production? Seems to be the case, however can someone explain how the 12 month target price is 50c yet we will do the equity raising at 22.5c in 12months? I'm clearly overthinking their analysis.
I'm ok that there is zero value for battery facility, and close enough to zip for all of Merelani, Tanga, Kagera & Further exploration upside combined.
However they still have me at a loss :-( as I would have thought we'd be raising any equity at 50c+ following received confirmation of finance for A$75m, leaving A$25m equity?
Hypothetically if we issue at 50c being 50mil shares for A$25m with the projected MCap of 163m yields a post raise price of 61c/share. Just my thoughts, who have a confused other than myself. Comments to help clarify please. Cheers
KNL Price at posting:
33.0¢ Sentiment: Hold Disclosure: Held
