Why the Euro Manganese (ASX:EMN) share price is volatile this week

The Euro Manganese Inc CDI (ASX: EMN) share price is trading lower again today after two volatile swings to start the trading week.
The post Why the Euro Manganese (ASX:EMN) share price is volatile this week appeared first on The Motley Fool Australia. –

asx share price bounce represented by investor being bumped along volatile price chart

The Euro Manganese Inc CDI (ASX: EMN) share price has been volatile so far this week. Shares in the Canadian group roared back to life on Tuesday, closing 7.8% despite slumping lower in Monday’s trade. 

At the time of writing, the Euro Manganese share price is down 4.35%, trading at 66 cents.

Why is the Euro Manganese share price falling?

Euro Manganese is a Canadian small-cap battery materials company listed on the ASX. The group specialises in the extraction and development of high-grade manganese for use in electric vehicle (EV) batteries. The company is advancing its Chvaletice Manganese Project in the Czech Republic as a key strategic initiative.

Shares in the Canadian mining group slumped lower 4.5% lower on Monday after the company announced a A$30.0 million private placement to the market. Strong institutional participation across the book helped to make the placement oversubscribed.

The proceeds from the $0.60 per CDI offer will help advance its Chvaletice Manganese Project. Euro Manganese intends to produce battery-grade manganese by reprocessing a large deposit of manganese carbonate, contained in waste from historical mining operations at the site.

The Euro Manganese share price crashed lower on Monday after the oversubscribed placement. A strategic investor and environment, sustainability and governance (ESG) focused fund underpinned the capital raise.

However, it hasn’t been all bad news for shareholders. The Euro Manganese share price pared back its losses on Tuesday, surging 7.8% higher to close at $0.69 per share.

Euro Manganese raised the A$30.0 million in funds across two tranches. Euro Manganese maximised its A$25 million under Listing Rule 7.1 in the first tranche. The second tranche of $5.0 million, in excess of Listing Rule 7.1, will be subject to shareholder approval to be sought at a special meeting in May 2021.

Euro Manganese currently has a market capitalisation of $134 million.

Foolish takeaway

The Euro Manganese share price fell 4.5% lower on Monday after its latest capital raise announcement. The volatility continued on Tuesday with shares in the battery materials group surging 7.8% higher to $0.69 per share at yesterday’s close.

Shares in the Canadian battery materials group are trading lower again today following two large share price swings in the last two days.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Ken Hall 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 Bruce Jackson.

The post Why the Euro Manganese (ASX:EMN) share price is volatile this week appeared first on The Motley Fool Australia.

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.

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

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

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 indefinitely, 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.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!