holders beware

I certainly hope some of you sold the options and bought heads instead like i said as you have the luxury of time to put it in the drawer.

It is going to look very ugly if MYG does not get finance.
Am i surprised if they don't get it? No

The gold price they used was too high (1750$ in AUD not USD), this would suck in retail but certainly not analysts or finance providers. They generally have a base case scenario using a conservative long term gold price of something like 1350$ of which the IRR% for Mutiny would be horrible.

Second thing is if finance is secured they are not well buffered. This means they need an additional 10-15m in working capital in case of delays and costs blowouts. WA is high cost environment and costs can skyrocket.

Third is MYG already has a substantial debt of 16m.

So lets see what will happen if they don't get finance...

Start with repaying 16m debt. Then the fact that they don't have strong institutional support. Top 20 hold like 35%+ and consists of mainly retail holders. Biggest shareholder is ATW corp which i don't think has money from memory of reading their cashflow report. Capital raising will be very tough. Funding conditions not met will see Sandstorm pull out.

Things gonna get worse as ATW corp shares come out of 15 month escrow. Who knows what they will do with them. That is 40m shares not available to be traded now made available.
http://www.abnnewswire.net/press/en/71023/Mutiny_Gold_Limited_(ASX:MYG)_Completion_of_Royalty_and_Project_Acquisition_for_Gullewa_Gold_Project.html


Good luck and i just had to laugh at the comment made by Daytr that this is the best BFS he has read in 15 years of mine finance. How many have you read? 2? No way this is true . Have a look at IGR when they started.

Good luck. Hope gold rises and this finance deal goes through.