just mindblowing, page-6

Beijing, I am totally supportive of your comments. The whole reason that BLY's SP has been heavily discounted is because of its debt situation and the global outlook for mining and therefore mining services. The outlook for the latter has substantially improved in the last couple of months yet the SP has remained substantially discounted - so the remaining reason for that discount must be the debt issue. The SPP will eliminate concerns about that issue and allow the company to get on with business, having become leaner after being forced to cut costs to survive (like many companies).

There seems to be no rhyme or reason to me why various company SPs respond to rights issue announcements. What I do know is almost inevitably after resolving the debt issue the SP discount vaporises and the SP goes up even though there has been a dilution. The bets example I can give of that is of MGX when it announced its SPP back in November last year, with an issue price of 0.60 at a time when the SP was < 0.30. But having done the SPP MGX stagnated for a while until April when it began to shoot up and its never looked back. Thats what I think will happen with BLY.

So while it would have been better if BLY could re-negotiate its debt obligations (imo) issuing a SPP is as you say a no-brainer to an improved outlook for the company.

I am not a holder right now (unfortunately sold out at 0.25 before the most recent rally), but after the announcement I decided to wait to see how the SP reacts and if possible use it as an opportunity to buy back in before the SP begins to increase to a post-GFC fair value level.

Good luck to all holders (which I plan to be again very soon). Sharks.