MOL 0.00% 6.9¢ moly mines limited

i am just stating the obvious here, but the higher the share...

  1. KGD
    236 Posts.
    i am just stating the obvious here, but the higher the share price, the more likely the company is going to survive. At 50 cents, the warrants that TCW own (15M), are worth $7.5M, but at $2.00, they are worth $30M. That means if they let the company go bust, they will loose a significant amount of money. The high stock price also means that the company may be able to issue shares without massive dilution. They can raise 200M by issing 200M shares at $1.00, whereas previously they would have had to issue 500M or something, depding on the price of issue. This is a very good thing. Also, Andrew forrest owns 7.5M shares that he got when he excersised his options early this year - he has made 6 x his money. I doubt he would want to loose it.
 
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