Insights

Exploding 600% in a month, what is going on with the Cobre share price?

Why is the Cobre share price doing so well?
The post Exploding 600% in a month, what is going on with the Cobre share price? appeared first on The Motley Fool Australia. –

The Cobre Ltd (ASX: CBE) share price is climbing again today and has lifted more than 600% in a month.

This ASX mining share is rising 1.39% today. In this week alone, the company’s share price has exploded 100%.

Let’s take a look at what Cobre announced today.

$7 capital raise attracts ‘significant demand’

Cobre has completed a $7 million capital raise at 15 cents a share to sophisticated and institutional investors.

This follows the company entering a trading halt yesterday ahead of news of this capital raise.

Cobre said the placement attracted “significant demand” from current and new sophisticated international and domestic institutional investors.

Shares were offered at a 16.7% discount to the closing price on 2 August.

The funds will be used to fast track exploration at the Kalahari Copper Belt in Botswana. Cobre said the exploration will be on the tenement package held by Kalahari Metals Limited (KML). Cobre signed a share purchase deed to acquire 100% of Kalahari Metals, a UK company, in June.

The placement involves two stages, the second of which will require shareholder approval at a meeting later this year. This second stage involves the issue of 9.8 million ordinary shares at 15 cents per share to the company’s largest shareholder, Metal Tiger PLC.

Commenting on the news, executive chairman and managing director Martin Holland said:

I would like to extend a vote of thanks for the support from existing and new shareholders into this placement which we see as a vote of confidence in the strategy the board is developing to fast track exploration with the aim to unlock this new potential discovery in Botswana.

Earlier this week, Cobre reported significant copper mineralisation at the project.

Cobre share price snapshot

Cobre’s shares have jumped 22% in a year, while it has surged 94% in the year to date.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has lost more than 16% in the last year.

Cobre has a market capitalisation of nearly $30 million based on its current share price.

The post Exploding 600% in a month, what is going on with the Cobre share price? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cobre Limited right now?

Before you consider Cobre Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cobre Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Copper and cash: Why this ASX mining share is on ice today
Guess which tiny ASX mining share just rocketed 74% on an ‘outstanding’ new copper find
Guess which ASX mining share just exploded 100% on a new discovery

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info