Insights

Why the Silver Mines (ASX:SVL) share price is sinking today

The Silver Mines Limited (ASX: SVL) share price is sinking today following the announcement of a successful capital raise. We take a closer look into the details.
The post Why the Silver Mines (ASX:SVL) share price is sinking today appeared first on The Motley Fool Australia. –

Silver mining

The Silver Mines Limited (ASX: SVL) share price is sinking today following an announcement that the miner has successfully completed a capital raise.

During mid-afternoon trade, shares in the silver-focused mineral exploration company are down 3.64% to 26 cents.

Successful capital raise

The Silver Mines share price hasn’t fared well today, despite the company updating investors about its latest placement.

According to its release, Silver Mines has successfully completed a capital raise of $30 million. Offered to institutional, professional and sophisticated investors, the company revealed that demand exceeded the funds needed to accelerate its growth strategy.

The placement was executed at an issue price of 22 cents per share, reflecting a 13.6% discount on the five-day volume-weighted average price. As a result, Silver Mines will place an extra 136,363,637 fully-paid ordinary shares to its registry. 

The funds received from the capital raise will be primarily used towards progress the company’s flagship Bowdens Silver Project. This includes pre-development expenses as well as funding exploration activities over the next 12 months. In addition, corporate and general working capital will also be financed.

Settlement of the placement is expected to occur this Friday 19 February. Quotation of the placement will follow through on Monday 22 February.

Quick take on Silver Mines

Silver Mines is Australia’s largest pure play silver company with expertise in exploration and development of quality silver projects. Its portfolio consists of the Conrad and Webbs projects, the Tuena Project and its recently acquired Bowdens Silver Project. The company’s Bowdens project is said to be one of the world’s largest undeveloped silver sites – a mineral resource of 275 million ounces of silver equivalent.

Silver Mines share price review

In the last 12 months, the Silver Mines share price has been trending upwards, gaining more than 160% on this time last year. The company’s shares hit a 52-week low of 5.2 cents in March 2020 before recovering.

On current prices, Silver Mines has a market capitalisation of around $276 million.

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 Aaron Teboneras 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 Silver Mines (ASX:SVL) share price is sinking today 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!