Europa Metals pours cold water on recent rally


Europa Metals pours cold water on recent rally

Published Date: 2020-07-31 | Source: Stephen Gunnion | Author: Stephen Gunnion

Europa Metals pours cold water on recent rally

Its share price retraced some of its recent heady gains after it said there was no material event to explain the recent surge.

Europa Metals ended a heady rise in its share price this week after saying there was no news to drive the activity. Its shares fell 70%. After ending last week at R3.69, the stock has been on the rise, surging 89% on Wednesday alone to close at R30.20.

The metals exploration company, previously called Ferrum Crescent, said it had noted significant increases in the value of its stock since its general meeting a fortnight ago, where it outlined a cost-cutting programme and the amendment of its capital structure, resulting in a share consolidation.

The company, with is listed on the JSE's AltX and the London Stock Exchange's AIM, said as a lead, zinc and silver project with high grades, current and anticipated commodity pricing was favourable to its Toral project in north west of Spain. It had recently concluded a series of cost cutting measures combined with the approval of an incentive plan and said the recent rise in its share price was positive for the potential exercise of outstanding warrants, which would mean further funds for the company.

It said the trading disparity between Altx and AIM continued to be monitored by the company, its advisors and the JSE but represented a comparatively small part of the shares in issue.

Following the share consolidation this month, it said the new pricing of its shares normalised it next to its peers and allowed easier comparison of the equity valuation in the context of its core asset.

It said it would provide a new strategic outlook on operational and group activity once a series of current work streams had been completed.

Its shares closed at R9 yesterday.

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