I am thinking of selling my shares and then shorting it after this dismal report....
...according to this ....the only people that is going to make any money with this until 2031, is the management and the 'drilling' teams...$320M of cash raised already earmarked....and nothing to show other that a share price of 88% lower that highest recent capital raise....
....why do they need to spend another $110M at this stage...especially after spending almost $210M to date....?
...the current strategy is clearly not working, especially with this market......in 2023 they raised at CAD23/share (CAD50M)...then CAD$15/share (CAD109M)...then CAD15/share (CAD75M)...latest CAD4/share (CAD69M)....C$320M of capital raises later and the share price is ...WAIT FOR IT: C$2.70/share....and still falling....
...moreover, compensating yourself then c$15M/ year when the share price is circa 80% down from the last two years' C$320M capital raises ....is worrying... this is about ethics...and greed....they could have rather earmarked say $10M for share buybacks, after raising the cash for 9x the current market price...
.... the share price is currently trading at only 12% of the highest recent share issue (C$23/share)...
....every time someone acquires shares on ASX/TSX...the brokers lend it out to be shorted.... this report just showed that there is no plan until 2027 to preserve any equity value.... today the shorters managed to take it down another 4% with only 400,000 shares on TSX....
...bottom line:
......based on the latest trajectory: by 2026, the $320M raised would be gone...they then have a site with 100,000m of holes... a rich management team and loaded local contractors & 'consultants'.... all funded by poor shareholders....
...if you have raised cash at 9x the current price attributed to 'naked' short attacks on ASX/TSX...wouldn't it make sense to buy those shares back on the market at this stage ...or what am I missing? ...c19M shorted shares on ASX only equates to A$6M...this approach would hopefully preserve the equity value (cash raised)...that is if the intent is still to have a viable FID by 2027/2028....
...so the question is again...why hold...if you could make more money shorting it as proven last 18 months?
...only the shorters made money with this since the C$310M of capital raises....management team does not appear to care about the share price these last 18 months....do you think they will the next 18 months?
My view after this report ...sell now,...you could always buy it in 2027 for probably at a much lower value than today...they are going to have to issue billions of shares for the equity contribution...assuming that there is another 80% of equity destruction until then....but that is assuming that it is not delisted or sold for 1c/$ by then after the equity got totally destroyed by short sellers...the destiny of most of the other companies that was managed by this team according to that short seller report last year with more information about this.... I gave them benefit of the doubt...but after seeing this report and the 'plan'.... I think history is going to repeat itself if the management team is not going to address the flea issue (shorters), they have attracted....
.....only way for this company, with this CEO, to 'turn the current tide'...is for him to resign.... to get rid of the short sellers via share buybacks... be acquired ASAP...
... otherwise...change your investment thesis....short it!
...my two cents...
PMT Price at posting:
30.0¢ Sentiment: None Disclosure: Held
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