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CMM

Why is Capricorn Metals LTD up over 250% since January 2019?

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

Capricorn Metals (ASX: CMM) jumped 18.42% on the 13th of August 2019 setting its 52-week high at a share price of $0.225. CMM is an exciting gold mining company that has projected reserves of 1.5Moz worth over $A3 Billion at current gold prices, the Company currently has a market cap of $199 million. Capricorn announced yesterday they plan to raise additional capital in order to develop existing projects.

cmm-capricon-metals-share-price

Source: Capricorn Metals

 

Why has CMM announced a $65 Million cap raise?

The Company has secured funding in the form of a $65m share placement at a price of $0.16 from institutional investors. The additional funding will be used by Capricorn to finance the continual development of their Karlawinda Gold Project. This will expediate construction commencement to  March 2020 with gold production expected to begin a year later. The investors include several of CMM’s long term partners as well as three former directors of Regis Resources Limited, a highly profitable gold company operating in Western Australia with a market cap of $3, 033m. Sustained investment and involvement in Capricorns operations demonstrates the confidence industry experts have in the firm’s profitability.

Could CMM have Western Australia’s next “Golden Mile”?

CMM operates the Karlawinda Gold Project that is over 110Km long and 30Km wide, the Company has explored two key sites within this area being Bibra and the less developed Francopan sites. Capricorn’s primary goal has been in establishing the profitability of the Bibra open pit mine site where gold reserves have been discovered in increasingly higher concentrations since 2017. In addition to the open pit mine Capricorn will develop at Bibra,  geological modelling identifies that other areas within Karlawinda will also be extremely valuable. 

Capricorn has been building support service needed to facilitate the Bibra mine site development this has included accommodation services indicative that the open pit mine will soon begin construction. CMM has also discovered extensive reserves at the Tamore Prospect that can be accessed through an eventual extension of the Bibra open pit mine increasing its long-term profitability.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978) (“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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