Metal Tiger offloads Sandfire shares to reduce margin lending principal
By Josh White
Date: Friday 24 Jun 2022
(Sharecast News) - Natural resources investor Metal Tiger has disposed of 310,000 shares in Sandfire Resources, it announced on Friday, at an average price of 454 Australian cents (255p) each.
The AIM-traded firm said that following the disposals, it was now interested in 7,057,057 Sandfire shares, representing 1.72% of its issued share capital.
As it previously announced, 2,842,667 of the Sandfire shares it held were subject to an equity derivative financing arrangement with a global investment bank.
Metal Tiger said it would use the partial proceeds of the sales on settlement to pre-pay around AUD 1.37m against the outstanding loan principal of AUD 7.46m owed to a nominee of SC Lowry Primary Investments on its margin lending facility.
That would reduce the principal amounts owed by the company on the facility to about AUD 6.16m, excluding interest accrued.
For the year ended 30 June 2021, Sandfire reported net profit of AUD 170.08m, and as of 31 December, Sandfire reported net assets of AUD 1.55m.
"We have taken additional measures to reduce our risk exposure as it relates to the loan," said chief executive officer Michael McNeilly.
"We are now very well positioned to weather any prolonged market downturn."
At 1111 BST, shares in Metal Tiger were up 1.31% at 15.45p.
Reporting by Josh White at Sharecast.com.
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