GCM Resources (LSE:GCM) has conditionally raised approximately £1.0 million through a placing of 16.7 million new ordinary shares at 6 pence per share, representing a discount of around 20% to the prior closing bid price. The fundraising is intended to bolster the company’s working capital position as it continues to progress its flagship Phulbari Coal and Power Project in Bangladesh.
Proceeds from the placing will be used to fund corporate overheads, legal and advisory expenses and general administrative costs. Management noted that recent political commentary and policy signals in Bangladesh suggesting greater support for domestic coal production are encouraging, although not yet sufficient to provide definitive clarity on the project’s path to development. The new shares will account for approximately 4.72% of the enlarged issued share capital and are expected to be admitted to trading on AIM on 21 January 2026. In addition, warrants have been issued to Clear Capital as part of its remuneration for acting as sole bookrunner on the placing.
From an investment perspective, GCM Resources’ outlook continues to be constrained by its financial profile. The company remains pre-revenue, with ongoing net losses and sustained negative operating and free cash flow, despite maintaining a relatively solid balance sheet with modest leverage. Technical indicators are more supportive, showing a strong underlying trend and momentum, although overbought signals introduce near-term risk. Valuation remains difficult to assess due to negative earnings and the absence of dividend support.
More about GCM Resources
GCM Resources plc is an AIM-quoted resource development company focused on advancing the Phulbari Coal and Power Project in north-west Bangladesh. The project hosts a JORC-compliant coal resource of approximately 572 million tonnes and is intended to integrate an open-pit coal mine with fuel supply for existing and planned coal-fired power stations. The company’s strategy centres on delivering low-cost, domestically sourced electricity using high-efficiency generation technology, subject to approval from the Government of Bangladesh and in partnership with international development stakeholders.
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