I was surprised they didn't raise more as if hole 3 isn't a absolute cracker they may struggle to have enough to get past hole 1 or 2 in the Fed land when/ if they get approval to drill. A couple of poor results will mean share price in the doldrums and no money in the kitty. That is why I thought they would raise a bit more now as a buffer and if all went well no real harm with teh extra dillution.
Does anybody know if they only went to try and get such a small amount or went for a larger amount and that was all they could get?
We know they will hit potash but it is the thickness and the quality that will drive this as it will determin if the model is an any way accurate or they have the assumptions wrong.
You can have all the confidence you want but in the end between a weird market, volatility , Europe and this time of year I thought more money in the bank would have been better even at these levels as it is a very expensive program going forward.
If the tip sheet followers run away from this due to volatility next raisings may not be at much higher levels. Always hard to tell with early stage stuff when there is a large percentage of fast money jumping in and out or ready to pull the trigger.
Hope they can communicate clearly
Have a good Christmas and New year and hope the drill turns up a thick bed
POK Price at posting:
68.0¢ Sentiment: None Disclosure: Held
