AGM, page-348

Regarding consolidation, dilution, what might have happened and moving forward:

CONSOLIDATION
Discussed benefits of being over $1 include * more opportunity for thicker levels of support potentially slowing shorting activity.
* Attractiveness to new insto investors.
* Closer range to float on NYSE (needs to be over US$4. I think HKSE will happen anyway as long as the management team stay on for at least 3 years.
Concerns are
* If it will lead to lower SP. I don't think it will have much effect because going off minimum earnings of 2017 contract min. reported locked in deals and min. pricing ($830-$390) x 120,000 = US$52.8M free cash plus US$40M (last quarterly report). Not counting the next shipment
P/E under contract 0.42/(92.8M/1.9B) = 8.6
I don't think it can really go lower than that. It's showing P/E 12 on morningstar at the moment.
* would it lead to a CR. I'm not ruling it out to help investment in SDV and JB but the overall Market Cap which at these prices is AU$800M (US$600M) seems cheap already from previous point and was enrmusly popular before over SP0.50 so I would think the SP would want to be much higher if you wanted to execute a CR.

DILUTION
Although I personally can't see how this would benefit the company right now I don't think we need to put it against management. They are just putting it out there for the shareholders to vote on. They might as well ask, right? I would.

WHAT HAPPENED
I think the price hit a target price for several instos and they sold their positions, possibly taking a double bite by selling their own positions while taking out shorts from other instos. Although instead of taking out all shorts at 0.60 decided to short and sell in step over the last 3 months.

MOVING FORWARD
My opinion is that it is already at a bargain price and IMO low market cap for the expected earnings so much so I am not expecting a significant drop (if any) in SP if consolidation is resolved. Lower SP might be warranted if SDV were found to be a waste of money but looks quite solid. Existing infrastructure, good geotech, good geophys and plausible funding plan. Ticking lots of boxes.

All my opinions only and I think I am reiterating many points from other posters on this forum.

GLTA