After it became known that GRANGEX signed an agreement with Anglo American worth SEK 15 billion, at today's prices for iron ore and exchange rates, the share price for Grängesberg Exploration (GRANGEX) rose rapidly.
Before this big announcement, the share price of GRANGEX was heavily undervalued according to an anlysis by Emergers. They believe the share price could rise around 250 procent more, to a value of 94 SEK per share, before it could be considered to be correctly valued. "In order to buy our entire production, we wanted them to have 'skin in the game'. It is very favorable because now we can keep a high pace in the project and have locked in the cash flow over eleven years without diluting our existing shareholders. Our financial advisors are raving about this helping us as we move forward with the financing", Christer says after signing the agreement with Anglo American. Read the full article at Dagens PS