Yesterday we saw the SP do remarkably well post the 4c placement of 12.5m shares.
The punters who were in for a stag at the placement are surely out with the volume that went through.
I'll reiterate that it was great to see the company get it away at only a 5% discount to the SP at the time (closing SP was 4.2c & the oversubscribed placement was at 4c)
EXC has under 250m shares on issue, now with 1.5m cash. (EV of a little over 8m). For that, we have:
- 2 x Gold projects
- 1 x Lithium Project
There is a lot of projected news flow in the short term, particularly with the Lithium project.
There is no surprise that there is a lot of interest surrounding EXC & those who missed out or got scaled back in the placement are stacking the 4c bid which was the placement price.
I see minimal downside on this one given the fact that there are 3 high impact projects evidenced by managements ability to raise via a CR with only a 5% discount.
From a technical perspective, we've tested 4.8c twice and this is the resistance point. Once we break through that, it's all blue sky.
Fair Value IMO is somewhere in the 10c range pre-assay results which would give us an EV of c. 20m.
If the Lithium results in particular come back spectacular - well... you be the judge
