Assessing 29Metals (ASX:29M) Valuation After A$150 Million Equity Raising Announcement

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Jan 23

AdvertisementWhy 29Metals is back on investors’ radar 29Metals (ASX:29M) has launched a A$150 million non renounceable entitlement offer, fully underwritten by Macquarie Capital, to fund mining ...

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However, the 1 year...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","BK4585":"ETF&股票定投概念","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","EQR":"资产住宅公司","BK7095":"多种金属与采矿","29M.AU":"29Metals Ltd","BK4215":"住宅房地产投资信托"},"translate_title":"在宣布1.5亿美元股权融资后评估29Metals(ASX：2900万)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"29M.AU":1.5,"EQR":1.5},"content_text":"AdvertisementWhy 29Metals is back on investors’ radar 29Metals (ASX:29M) has launched a A$150 million non renounceable entitlement offer, fully underwritten by Macquarie Capital, to fund mining recommencement at Xantho Extended and to advance projects at Gossan Valley and Capricorn Copper. See our latest analysis for 29Metals. The equity raise comes after a tough recent stretch, with a 7 day share price return of 31.71% decline and a year to date share price return of 24.32% decline. However, the 1 year total shareholder return of 90.91% contrasts sharply with the 3 year total shareholder return of 75.27% decline, highlighting strong recent momentum against a much weaker longer term picture. If this kind of turnaround story has your attention, it could be a good time to broaden your search and check out fast growing stocks with high insider ownership. With the shares trading around A$0.42, an entitlement offer priced at A$0.40, an intrinsic value estimate signalling a large discount and mixed return history, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth? Price-to-Sales of 1x: Is it justified? On a P/S of roughly 1x at a last close of A$0.42, 29Metals looks inexpensive compared to peers, yet slightly expensive relative to its own fair ratio. The P/S ratio compares the company’s market value to its revenue, which can be useful for loss making miners where earnings based metrics are less meaningful. For 29Metals, this frames how much investors are currently paying for each dollar of reported revenue. Based on the SWS fair ratio work, 29Metals screens as expensive versus an estimated fair P/S of 0.8x, a level the market could potentially gravitate toward over time. Yet against the Australian Metals and Mining industry average P/S of 145.4x and a peer average of 16.4x, its 1x multiple looks extremely low in comparison, which highlights a sharp gap between how the market is pricing 29Metals’ revenue and the broader group. Explore the SWS fair ratio for 29Metals Result: Price-to-Sales of 1x (ABOUT RIGHT) However, you still have to weigh ongoing net losses of A$33.103 million and a recent 24.32% year to date share price decline as clear pressure points. Find out about the key risks to this 29Metals narrative. Another View: DCF points to deep undervaluation Our DCF model tells a very different story. On this framework, 29Metals is trading about 69% below an estimated future cash flow value of A$1.39 per share, which is a much larger gap than the P/S of 1x versus a fair ratio of 0.8x suggests. That raises a simple question: is the current price reflecting too much caution, or is the cash flow optimism too generous? Look into how the SWS DCF model arrives at its fair value. 29M Discounted Cash Flow as at Jan 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out 29Metals for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 881 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own 29Metals Narrative If you see the numbers differently, or prefer to work through the data yourself, you can build your own view in under three minutes with Do it your way. A great starting point for your 29Metals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If 29Metals has you thinking differently about value, do not stop here. The next great idea you research could be the one you remember.  Spot potential turnaround names and sharpen your instincts with these 3534 penny stocks with strong financials that already clear some basic quality hurdles. Ride major tech shifts by scanning these 24 AI penny stocks that tie artificial intelligence themes to listed companies you can actually research in detail. Focus your attention on value driven opportunities by filtering for these 881 undervalued stocks based on cash flows that stand out against their estimated cash flow profiles.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"shareholding","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}