It looks like Mr Market has EXG on his risk radar. Now that management has blotted its copybook
there is skepticism about EXG's ability to become cashflow positive in the near
future and it looks like the CR share price of 5c will be with us until there is an
indication of a sustainable positive cashflow or a takeover bid; whichever happens first.
Any further negative news could see the SP drop sub 4c, IMO.
The grade shortfall, the strip costs of Zero and the timing/execution of the CR
were all poorly handled; hence the market scepticism, IMO.
Good capital management could have seen a CR in February @ 10c saving us half the dilution
and putting a floor under the SP at 10c rather than 5c.
MM
EXG Price at posting:
5.0¢ Sentiment: None Disclosure: Not Held
