CLZ classic minerals ltd

"Im not saying this is good, I'm saying any idiot can benefit...

  1. 5,742 Posts.
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    "Im not saying this is good, I'm saying any idiot can benefit from gold with a MC of just 2,5m"

    The problem is they keep issuing shares like they're going out of fashion. This company reminds me of the US Fed, it just keeps printing money.

    Now the company has a SP of 0.001, which makes it very hard to raise funds as it massively dilutes holders. Because the SP can't physically drop any further when CLZ issues shares, they're just growing the MC while the SP goes nowhere.

    Like CLZ was last year, MC of $30M with a SP of 0.001.

    Now the SP is at 0.001 with a MC of $2.5M, in 12 months, the SP might be at 0.001 & the MC is $10M. So it just means they issued billions more shares.

    MC $2.5M / 0.001 = 2.5B SOI.
    MC $10M / 0.001 = 10B SOI.

    Bring on any subsequent SP consolidation & the original holders from 2 years ago would be wiped out again, because they just suffered a 150:1 consolidation.


 
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