@dwayne pipe It's interesting that you raise the Options. Do you hold any MDI?
For those who do hold MDI, or who may be considering buying MDI, below is the summary of Shares On Issue (SOI) and options:
Based on this recent filing, we can see the following:
a. Options = 605,312,004
b. Quoted Securities = 2,645,979,391
c. Total Securities = 3,251,291,395
Options as a % of total securities = 18.61%
Shares as a % of total securities = 81.39%
Now consider the market capitalisation of MDI.
The current market cap = 2,645,979,391 x the current SP ($0.02) = $52,919,587.
So lets imagine what might happen to the Share Price (SP) between now and January 2022 when all the options could be exercised, but the market capitalisation doesn't change. We can do this to model the potential dilution to the SP if all those options were exercised and nothing else changed (ie no new announcements, no reports, no change to gold price, no change to market sentiment etc between now and January 2022).
In that case the SP would be $52,919,587 / 3,251,291,395 = $0.016.
This represents a potential 18.61% reduction to the share price.
But of course this scenario is complete B/S, because it doesn’t consider any additional news flow, announcements or change in sentiment.
Still, you should ask yourself, given everything that is likely to happen between now and January 2022, is MDI going to be worth $0.016 per share in January 2022?
When thinking about these options you really need to consider why they have been issued, and the value of these options to the company to support its operations over over next 12 months. This is important - these options represent operating capital that MDI can access without leveraging debt.
Value of Options (ie potential operating capital):
Expiring 8/11/21 = $897,000
Expiring 31/01/22 = $2,363,517.82
Expiring 31/01/22 = $2,126,220.49
Total potential operating capital = $5,386,737.31
Over the same period MDI will likely:
a. Issue announcements relating to indicated resources at Goat Farm, Eureka, Plum Pudding, Twin Shafts and Old Town Well,
b. Issue announcements relating to indicated resources at McIntyre, McClaren and Ridge. Those who have been following MDI will recall that these deposits might actually represent a single large open pittable resource.
c. Issue an announcement relating to Shillington Gap and its potential continuity between the deposits at McIntyre, McClaren, Ridge and Shillington, and
d. Use inputs from (a+b+c) to finalise and issue the mining Feasibility Study.
So
@Armourlite the options are important, but you need to do your research and understand why they are important.
DYOR. Make your own decisions. Invest for the long term. Don't listen to down rampers.
All IMO, of course
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