Lithium producer, Altura Mining Limited (ASX: AJM) has completed the Securities Purchase Plan, with final interest considerably above the maximum allowable amount of $14 million.
The company received strong support from shareholders due to which it had to scale-back some applications to meet the SPP’s limits. The New Securities have been allotted equally up to $10,000 to Eligible Shareholders. The SPP gave Eligible Shareholders the opportunity to increase their Altura shareholding without paying brokerage fees or other transaction costs, irrespective of the size of their holding.
On 15 March 2019, the company had announced that it has increased the Securities Purchase Plan to $14 million to satisfy continued demand from shareholders which represented a significant increase from the original $5.0 million offer which was announced on 7 February 2019. The reason behind the strong demand from shareholders is the improved operational performance from the company’s flagship Altura Lithium Mine. The funds raised through SPP will help the company in achieving a nameplate production capacity of 220k tonnes per annum at the Altura Lithium Project. Altura Lithium Mine is a world-class lithium mine with a global resource of 50.5 million tonnes, capable of supporting more than 25 years of mine life. The mine is having an annual capacity of 220,000t of high-quality 6% spodumene concentrate.
During the six months to 31 December 2018, Altura joined the ranks of global lithium miners with the completion of construction, commencement of production and shipping of lithium concentrate during the commissioning of its Altura Lithium Project.
In the first half of FY 2019, the company reported operating loss of $10.978 million which was mainly related to the Group’s administrative and corporate costs and a net foreign exchange loss in the six months.
In the last few years, lithium demand has increased substantially. Between 2012 and 2017, global lithium demand increased from 134kt LCE to 229kt LCE, at a CAGR of 11%. It is expected that the rate of growth will increase to 18% during 2017-2022, with global lithium demand more than doubling to 526kt LCE. Around 93% of the total demand growth will be from battery applications and electric vehicles (EVs) alone will account for 80% of the total demand growth. By 2022, lithium consumption in Electric vehicles will reach 54% of total lithium consumption compared to just 3% in 2012.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.135 with a market capitalisation of ~$256.15 Million as on 21 March 2019 (AEST 3:07 PM). The counter opened the day at $0.135 and reached the day’s high of $0.140 and touched a day’s low of $0.130 with a daily volume of ~ 3,411,289. The stock has provided a year till date return of -10.00% & also posted returns of -38.64%, -12.90% & 8.0% over the past six months, three & one-months period, respectively. It had a 52-week high price of $0.487 and touched 52 weeks low of $0.120, with an average volume of ~ 5,023,875.
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