from spec to investment?, page-6

Yes Angus - I believe you are pointing in the right direction.

As always miningnut has been thinking well ahead and has a valid point.

However let us look at reasonable possibilities -

CBA unloading and soon out with any surge of interest now.
This surge of interest will come with increasing profits through to fourth quarter report. Will come on any announcement of new mine to be developed.
Will come with increased proved depth of Dikulushi in response to planned drilling. Will come with announcement that Gecamine is a goer.

Remember Anvil is cashed up with Canada float and increasing profits. So has about $8 million? available now - balanced to some extent by Rand borrowing.
Increasing cash flow with Stage 2 sufficient to make borrowings look minimal.

So rights issue to fund Gecamine?
Miningnut is no doubt correct - that a rights issue will take place.
Gecamine go ahead announcement and rights issue should be share price positive.
One should be loading up in anticipation.

The share price positive increased buying will be counter balanced by some selling to obtain cash for taking up rights.
So share price will not go radical - will respond in a balanced manner to market forces.

No institutional advantage for selling share price down at the moment.

A lower share price before rights issue announcement would mean holders get rights at lesser costs. Perhaps that is what miningnut is astutly pointing out.

However those selling to take up rights will be naturally protected ---
* Low share price - cheap rights.
* High share price - more expensive rights.
The number of shares required to sell in order to finance rights would be similar in both scenarios.

An advantage would be gained by large holders with liquidity should the share price be moderated to ensure lower priced rights.


That is how I see it anyhow!

Cheers

NT