The Boart Longyear Ltd (ASX: BLY) share price has been the top percentage riser on the ASX so far today. This comes after the company announced it has engaged the services of a world-renowned advisor to provide it with strategic recommendations.
At the time of writing, the Boart Longyear share price is racing 52.94% higher to $1.04. This is just below its intraday high of $1.05 that was achieved mid-morning.
What did the company announce?
The Boart Longyear share price is gaining significant interest today with investors scrambling to get in on the action.
Prior to the market’s open this morning, Boart Longyear advised it has engaged multinational investment bank and financial services firm Rothschild & Co to assist with the company’s strategic direction.
The decision to seek advisory support from Rothschild comes as Boart Longyear is looking to tackle its debt obligations. Net debt recorded at the end of the September period stood at $823 million, increasing $67 million from financing costs.
The company’s current debt facilities are expected to mature during the second-half of 2022. Management said that possible options to service the growing debt profile could include refinance or recapitalisation.
Boart Longyear CEO Mr Jeff Olsen commented on the company’s position, saying:
It is important for the company to start exploring all available options to address its future debt maturities and set us up to take advantage of future growth opportunities. There are clear signs that the mining and metals market is seeing increased activity as demonstrated through recent investments in our sector with major mining houses signalling increased exploration spend.
We are also seeing intermediate and junior miners accessing capital through significant equity raisings allowing them to get out and explore for tomorrow’s resources.
Boart Longyear share price snapshot
Despite today’s meteoric rise, over the past 12 months, the Boart Longyear share price has dropped nearly 40%.
Reaching a 52-week high of $1.75 last January, Boart Longyear shares took a dive following the onset of the pandemic. Furthermore, throughout the second half of 2020, and prior to today’s rise, the company’s shares had barely managed any significant recovery. It’s also worth noting that the Boart Longyear share price hit an all-time low of 29.5 cents just last month.