WMC (ASX) Ann: Trading Halt

Originally posted by rosencrantz ↑

good analysis loki
and
""I would disregard this research report"",....and I do! be assured.

what should be bothering the shareholders is if they proceed with this funding agreement with death spiral practitioner Lind Partners whose modus operandi is to fund the ailing borrower with loans convertible into listed shares at a significant discount to the last price...which they promptly dump into the market ready for the next funding tranche. The well paid Blackham management are able to say "we're progressing " thereby maintaining some buying interest but given its history the BLK price will spiral down as LIND sell and will be nearing 1 cent in quick time .
That there is a mineable resource at higher gold prices is most likely . Better to put the mine on care and maintenance , sack the present board and management, install some caretaker directors on minimal benefits and await a gold price increase to say USD 1800 per ounze.
The BLK share price will drift around until that fateful time ..but it sure beats the inevitable fate if Lind walk in.

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Have you read the Agreement with Lind ... 31 August 21?

It reads like an insurance policy to BLK up to refinancing and choosing the ultimate path for the expansion ...

"The company plans to utilise its operating cash flows to fund the expansion but will also require a suitable funding solution. The Lind Facility provides the company with time to choose the optimal funding solution"

As far as i'm aware the facility hasn't been drawn upon (at BLK's discretion, in the form of equity at prevailing market price) ...

In addition Lind bought into deal at c1.2m shares at the BLK price back in August ...

So if anything Lind has lost out ... BLK has at least $10m in the kitty ... and we'll wait for Monday's announcement but hopefully a bridge facility that privides some direction on the expansion ... and frees up c $15m in cash up to 2020

I have an issue with the CEO not disclosing the wall failure to the market sooner ... but one thing is clear ... management cannot be accused of diluting shares to date ....