I wouldn't use the capital raising to get rid of the Canadians as a good example. Part of the raising was talking about reaching 100,000oz from Coolgardie by 2011 FY. Well they won't be doing that in 2012FY! $16m was promised to refurbish the TMH mill, only for them to raise at 2c less that 12 months later to refurbish the mill. The second raising resulted in over a billion shares being issued.
On top of this they raised $40m to accelerate Coolgardie to 130,000oz, at a decent price, but have gone and blown it on an aquisition which is a high cost producer. I mean lets be serious, it is nothing more than that until the get cost sub $850. Now they bandy about 175,000oz! What a joke! They don't even own some of those ounces, hence all the *'s all over their announcements. Not to mention that they doubled the number of shares on issue!
What they don't need right now is shareholders telling them it is OK to raise more capital after they have wasted so much. They have got themselves into this position through their own management. They have seriously underperformed.
What gets me really agitated, is finding out through HC that there are transport issues at Coolgardie and drilling is on hold at TI. How pathetic! They don't have the goolies to communicate the truth to their shareholders.
All IMO!
FML Price at posting:
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