10million market cap... but more than coal..., page-9

Hi ans25,

I looked at CAG too but the share price seems to have a little too much games on it.

Both have about the same size market cap but I at the moment but IF THE CAG PROJECT GOES AHEAD THERE WILL BE MASSIVE SHAREHOLDER DILUTION that will occur on it. In fact 1billion 3cent options are issue to Metro.

So CAG has...
365million shares on issue now...
100million 1cents options...
65million shares for the coal project and then...
1billion 3 cent options later.

Hence at the current price of 3.5 cents the market cap of CAG is effectively $53.6MILLION

The dilution of LOD from their coal projects is nearly negligible.... only the issue of 9 million shares.

LOD has..
130 million shares on issue...
74 million shares as of a result of the resent cap raising..
30 million 5cent options on issue and...
9 million shares will be issue for the coal project.

So effectively at the current share price of 6.7 cents the market cap of LOD is $16million.

SO EFFECTIVELY THE MARKET CAP OF CAG IS 3.5 TIMES GREATER THAN THAT OF LOD.

LOD also has something that CAG doesn't have, and that is a few other interesting projects to fall back on if necessary. Ones with what look like BHP Billiton taking interest in.

LOD looks like an easy winner out of the two IMO.


Cheers,

Francoo.