Troy’s Shares Tumbles Despite Successful Share Placement Of $2.5 Mn – A Quick Look

  • Dec 24, 2018 AEDT
  • Team Kalkine
Troy’s Shares Tumbles Despite Successful Share Placement Of $2.5 Mn – A Quick Look

Troy Resources Limited (ASX: TRY) is into the business of exploration and production of Gold in South America and Australia. The company has commenced its business in South America in the year 2002. It has mines in Brazil and Argentina and has also acquired a project in Guyana. Troy Resources was started in the year 1984.

It has developed and operated in mines historically in both Australia and South America. It started its operations in the South-American region in the year 2002. The company did an acquisition of the Karouni Project in Guyana in July 2013. Further, the company’s major lookout is on the implementation of international best practice in health and safety, which will promote environmental stewardship and social responsibility. 

The company recently announced the completion of share placement to raise a fund worth approximately $2.5 million, at a price of $0.015 per share. Although the placement was supported by existing domestic, international as well as new professional investors, still the placement fell short of the company’s target. As per the announcement, this shortage has been attributed to the turmoil in the global capital market. The placement, however, will be for 23,522,860 shares and will be pursued in accordance to company’s capacity under the rule of ASX listing 7.1. Troy also mentioned about a share repurchase programme at the same price as the shareholders who participated in current the placement. Following the press release of capital raising, the stock has commenced trading on ASX on an immediate basis.

The funds from this capital raising will be used for funding activities in Guyana, which includes exploration of the Ohio Creek and the construction of a road from Karouni Mill to Ohio Creek. The non-executive chairman of the company, Peter Stern mentioned the company is grateful to its shareholders for their support and participation in the placement, moreover in a difficult market scenario. This will help the company to enhance its drilling program.

The company, total revenue stood at $115.714 million in FY 2018 as compared to $91.76 million in FY 2017. The net loss for the year stood at $9.61 million in FY 2018 as compared to $148.20 million in FY 2017.  The total assets in FY 2018 remained at $108.25 million as compared to $138.90 million in FY 2017. The net cash inflow from operating activities stood at $ 16.83 million with respect to an outflow of $1.79 million in FY 2017.

Let us now quickly analyze the performance of TRY’s stock and the returns it has produced over the past few months. The stock price of Troy Resources Limited ended the session at A$0.100 per share which represents that the stock has encountered the fall of A$0.025 per share or 20.0%. The market capitalization of Troy Resources stood at circa $46.14 million. It posted a day high of $0.110 and a low of $0.094 with the stock opening in the market trade at $0.095. The stock yielded a YTD return of 28.87%. The stock has a 52-week high price of $0.175 and a 52-week low of $0.082.


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