Symbol Mining’s Share Price hits 10% High on Sales Agreement

Symbol Mining Ltd’s [ASX:AL1] share price is trading 10% higher, at $0.021 on news that it has executed two agreements to deliver an added $3.7 million in funding.

The high grade and high margin lead and zinc explorer, developer and producer released an announcement today, updating investors on its Macy project, as well as its first sale agreement.

Symbol Mining’s share price sees first revenue

After securing the sale contract for the first shipment of Direct Shipping Ore (DSO), Symbol Mining’s Macy project has seen its first revenue. Its first cash flow is set to happen around 12 months from its listing, which is also provided by the sales contract.

The funding is for working capital requirements, as shipments start to ramp-up pace, exploration boosts, and giving Symbol Mining the freedom to take advantage of the additional processing unit currently under construction, as stated in its ASX media announcement.

The company has also secured US$2 million under a noble loan facility with Noble Resources. Symbol Mining will receive an increase to its loan facility limit bringing it to US$5 million, as well as an extension to repayment dates for its drawdown by three months, pushing back the final maturity date to September next year.

Securing the funding is likely helping Symbol’s rising share price, so investors could expect to see a slight dip come tomorrow’s trading as investor excitement settles.

Symbol’s 2019 forecasts

Symbol Mining’s CEO, Mr Tim Wither said:

The additional funding and the commencement of revenue puts the Company on a solid footing and provides the ongoing funding for our planned activities, without the need to undertake an additional capital raising. We are pleased to have achieved this milestone and greatly appreciate the continued support from Noble and from our new investors, who after their due diligence, have confidence in Symbol and our future successes

Being able to fund these activities without a capital raising will look positive for potential investors, but the real test for Symbol Mining is to see whether the market and prospective investors have confidence in the company.

A good indicator will be how the stock is trading tomorrow.

Regards,

Ryan Clarkson-Ledward,
For Markets & Money

PS: Interested in mining stocks leading into 2019? Markets & Money resources analyst Jason Stevenson believes that your best opportunities lie in smaller, more speculative stocks that aren’t restricted to iron ore. The kind that could see massive share price moves from a single positive drill-hole result. For 10 of his favourite mining stocks on the Aussie market this year, download his free report ‘Top 10 Mining Stocks 2019’ today.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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