On 16 June 2020, Southern Alliance Mining Ltd (SAM) commenced a placement of 56 million new shares and 20 million vendor shares at S$ 0.25 per share. This share placement ended on 24 June 2020 and SAM began trading on the SGX on 26 June 2020. It is the first share placement activity on the SGX after the circuit breaker which was initiated in end-March 2020. You may click here to learn about SAM before investing in it. But, before you do so, you may spend five minutes, where I’ve summarised my findings on SAM so that you can determine if studying about this stock is worth your while.

#1: Business Model

SAM owns 60% shareholdings in Honest Sam Development Sdn Bhd (HSD). HSD is a Malaysia-based iron ore exploration, mining and processing company which operates the Chaah Mine, an open pit mine located 10 km southwest of a town known as Chaah in the state of Johor. The mine measures 225.7 hectares and it has 8.2 million tonnes of total iron ore resources on 31 October 2019.  ...