Its not the 1:60 share consolidation that concerns me, but the lack of detail around the issue of new share capital post consolidation (resolution 4, 20.8m shares at not less than 80% of the share price, raising approx $15m depending on share price post consolidation. It says the use is "primarily for mining operations and general working requirements". At the moment it suggests they are onconsidering issuing only to broking firms and clients of broking firms particpating in the issue (are the existing shareholders to be left out?)
After doing more research based on the quarterly annoucements, I still believe that the company can get cash costs (C1) down to $700 an ounce as they increase production and therefore I see valuation upside, especially if they can increase the JORC resources further. I just want to know what they are going to use the new capital for?
DYOR
LSA Price at posting:
78.0¢ Sentiment: Hold Disclosure: Held
