Equity Analysis /
Australia

AU : Strandline Resources - Strandline joins the developers club

    Mat Collings
    Mat Collings

    Research Analyst

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    CGS-CIMB
    14 April 2021
    Published byCGS-CIMB

    STA now fully funded for Coburn project development, following successful bond issue (US$60m) and capital raising (A$122m). Equity raising at 20.5cps was below estimates, but dilution more than offset by increasing commodity price forecasts. Construction activities forecast to ramp up in May with final investment decision anticipated this month. Maintain an ADD rating at a revised price target of 47cps, after refreshing model for impact of equity raising and revised commodity forecasts (see page 4).