who thinks a cap raising is coming?, page-6

I think they do need to Cap raise and this is why -

1) undrawn facilities or not they cant afford the interest payments remember they are basically cost natural as is for the next 18 months plus, any further debt or obligations will turn them negative and they will be in a borrowing cycle to pay the debts or borrowing eg screwed.....

2) they go to pains to state that is for the forecast as is, that means with a low AUD (96) and the price on the day was about $1390.00

This is where they are now in major trouble, if the AUD rises to lest say 98 then from what I can see they are in the red operating wise straight away, but also if the POG drops from that 1390 they are also in the red, if both lost lets say 2% that would be a 4 plus precent swing against them in the red and then you take a draw down facility at high interest to pay day to day operations,,,,,,,, Holly crap that is not a good place to be

The real tragic situation here is gold was about 900 when the LGL take over was done. The company had a share price of about $44, since then the POG has risen to lets say 1350 to be nice. That in simple terms is a 50% up lift in what should be shear profit, so we will also be very conservative and give the share price the same lift which takes it to $66.

Now it is I think about to break below $11 but since I was nice on the up side I will use $11 as the mark her. So then I pose this question as a hypothetical - What credible Mgt team can essentially wipe off 84% of the share value that should have been achieved and keep their jobs let alone the board to allow it.

I cant believe major funds have not stepped in yet and called for heads to roll at CEO, EXCO and Board level. Given the debt situation the only imminent hope in my view is a take over, as the benefit of the take over is the management ability, nothing else as the assets don't change, the same gold is in the ground that was there at $44........ it is the Management contribution that adds or detracts value, you know my view on this one here.