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Peninsula Energy (ASX:PEN) has finally started trading once again on the ASX after failing to provide the market guidance in the timeframe it was meant to, which then saw the company’s shares suspended earlier this year. Days later, the company’s chair would abscond from the company.
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That’s all you need to know, really, in explaining why when PEN recommenced trading this week, it was met with a hefty sell-off; down -21% WoW as at 11am. That said, shares were green intraday Thursday; the same is true for Friday morning.
The company has, in the meantime, preoccupied itself with a $70M equity raising which includes a pro-rata non-renounceable entitlement offer of 1 share for every fully paid share at 30cps to raise $48M; a second two-trance placement will raise the rest.
That may or may not bear poor omens for the company’s performance intraday Friday; heading into the second hour of trades the company’s share price was higher at 36cps with a market cap of $57M. It’s unclear to what extent Peninsula has been trading green this week on the back of an uptick in the uranium price on US benchmarks.
And the reason that’s causing so much excitement is because, for those who can remember those days of yore (read: mid-April), Deep Yellow came out and said mining Tumas wasn’t gonna make sense til uranium prices improved. Not long after, the company’s Chair and former CEO ditched.
All in all: Peninsula has a while to climb to get back to the early 2024 highs it, and no doubt its shareholders, were moreso enjoying.
PEN is 34.5cps.
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