Give credit where it is due. Rookieplayer gets the cigar. We will have to tune into what he says in future. Personally though, I am disappointed with the large amount of dilution.
I guess the MD has had to weigh up between
- securing funding requirements for the company for the next phase of development without worrying about the gyrations of external markets,
verses
- having confidence in what the company has on offer and in the emergent trend in the gold price and then finessing the way forward with multiple raisings at possibly increasingly higher prices.
And he has opted for funding security.
IMHO, our immediate future will be subdued leading up to the EGM so that resolutions can be passed. This is reflected in a weak reaction to the announcement.
Unfortunately the fund raising has occurred at a time when the gold markets are looking as if they could fire up for a change, but may be an indication of how difficult finance is to come by. Maybe it really is a case of grab it when you can?
Thoughts anyone?
Cheers nev
IGR Price at posting:
21.5¢ Sentiment: LT Buy Disclosure: Held
