CDM – Cadence Capital | Aussie Stock Forums

Cadence Capital Limited (ASX Code: CDM) invested in DeepGreen Metals several years ago. DeepGreen Metals was to list on the Canadian stock exchange at that time. This listing was delayed for several reasons, but has now been replaced with a much larger intended listing on New York Stock Exchange.

Our DeepGreen Metals investment, is approximately 2.8% of the portfolio, and is valued at the weighted average cost of the most recent purchases made in FY2020. The proposed listing is at a valuation substantially higher than our current valuation. The transaction reflects a pro forma equity value for The Metals Company (TMC) of approximately US$2.9 billion and enterprise value of US$2.4 billion. The recent raising of US$330 million was done at a price of US$10 per share. Our investment is currently valued at US$1.38 per share. Upon listing this would equate to a substantial uplift in Pre and post tax NTA for CDM shares. This transaction is subject to shareholder and court approvals. Once the TMC shares are listed and trading freely we will value this investment at market price.