Uranium play Alligator Energy on fundie charm offensive; Bells in tow

afr.com:

Listed uranium junior Alligator Energy, whose shares are up nearly 70 per cent year to date, held investor meetings last week in what fund managers reckon was a warm-up session for an impending cash call.

Uranium prices hit 12-year high in mid-September amid fears of a supply crunch from a coup in Niger, and a decision by Canadian miner Cameco to curtail production. Glenn Campbell

Street Talk understands Alligator had its broker Bell Potter arranging introductions to talk up its prospects without explicitly bringing up an equity raising. However, history says such meetings – more often than not – are a precursor to an equity raising, especially among junior miners.

Alligator has a nearly $220 million market capitalisation and was down to $18.5 million cash at June 30.

It has got a few balls in the air. It is chipping away at its Samphire project in South Australia and Alligator Rivers province in Northern Territory, while also doing preliminary works at another uranium asset Big Lake in South Australia and nickel and cobalt project Piedmont in Italy. Lastly, its boss Gregory Hall, who formerly worked for Rio Tinto and ERA’s Ranger and Jabiluka uranium mines, has been open to acquiring more assets.

Needless to say, Alligator could have several reasons to launch its equity capital markets trip – and Street Talk is not suggesting a deal is about to launch. Throw in a strong run in its share price as uranium prices hit a 12-year-high, and it’s easy to see a raising could be tempting for Alligator’s bosses.

A spokesperson for Alligator Energy declined to comment.