Australia's Sovereign Metals rises as Macquarie retains 'outperform' despite discounted placement

Sovereign Metals

27/03/2025 24:24

** Shares of Sovereign Metals SVM.AX rise 2.5% to A$0.835

** Miner said it would raise A$40 million ($25.15 million) via discounted share placement to fund development of Kasiya Rutile Graphite Project

** Capital raise came as a surprise to Macquarie, who believed that the firm was fully funded for progression of study, indicating higher-than-forecast corporate and study costs

** Despite capital raise, no participation from heavyweight Rio Tinto RIO.AX, who holds a 19.9% stake in SVM, was indicated, potentially reducing its equity interest to approximately 18.5% — brokerage

** Nevertheless, Macquarie maintains "outperform" rating at reduced PT of A$1 from A$1.2, citing attractiveness of co's rutile and "globally significant" graphite resources

** Stock up 12.8% YTD

($1 = 1.5903 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))