Sad to say,
but the capital raising will now likely be at a 25% premium to current market value via the underwriters.
It trust the directors fully understand that those shareholders who have seen a rather significant drop in their asset values(shares) and will not in any way take up 48c shares will probably be voting against the remuneration report,along with underwriters possibly holding around 50% of the total shares in the company.
I suspect those same underwriters will now be looking at a new board and future board representation to recover some of their lost market investment.
As I understand it,the issue was soley a potential increase in debt by December of $100m or so,until cheaper IO was sourced.
If there is more then material disclosure hasn't taken place and shareholders remain ignorant.
Consequently shareholders have seen a halving of their Capital (from say 76c plus) and lost more than 50% equity in their business due to dilution,all due to $100m potential increase in debt.
While at the same time capital works which could have been reallocated - deferrred or not done totaling around $400m continue to proceed without curtailment as far as we are aware,with little in the way of urgency in retructuring other parts of the business,especially mining.
With $600m in the bank supposedly,then WHY?
Meanwhile,shareholders must be shaking their heads at how a supposedly up with it board could be so mad to think they would think such a catastrophic Capital raising was in any way good.
If they have placed such a low value on the overall business,one naturally asks why no Capital raising when at $1.70 when it would have been considerably over valued and why wait until its down below asset stripping value.Unless,they just don't know what the true intrinsic value of the business they are running is.
DYOR + DYODD I suspect way oversold as shareholders wonder at the boards competence to handle their businesses finances,which otherwise operationally appears to be well run.If they can't do it someone else will be found,by those with the votes,I'm sure.
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