For those who are disgruntled at Atrum’s recent placement, and...

For those who are disgruntled at Atrum’s recent placement, and while not endorsing its dilutive nature, there is some comfort to be had.

The A$22m/US$14m raised will more than finance all of Atrum’s planned exploratory and regulatory activities over the next 12 months. Should those proceed as planned, and based on the published comments within the recent scoping survey, there is every chance that the current NPV of circa US$800m can move closer to $$1.2bn. The major catalysts for this will be the inclusion of the additional 108mt at Isolation South together with the prospects of higher proven grades/processing yields being established overall.

As others have written, Atrum is a very different beast from three years ago far less eight. Max Wang has done a brilliant job in terms of execution, the board is fit for purpose, the shareholder register is exceptionally solid, state government/First Nation relations seem good and Elan has all the hallmarks of a world class coking coal development next to established infrastructure facilities.

The biggest risk remains permitting. But should Grassy Mountain get its go ahead by the end of this year/early next, some of Atrum’s likely US$1.2bn of NPV will undoubtably be much better reflected in Its share price than its present (post-placement) tawdry market cap of a mere US$90m.

Its been a long time in coming. But after years of continual disappointment, poor leadership, infighting and wrong turns, there is every chance that a very profitable 12 months lies ahead for Atrum shareholders. This week’s dilutive fund raising (at a time when cash is exceptionally tight) will become a distant memory.

That said it is Atrum. Straight lines are not its forte!!