all very confusing

Well it is official … I have completely lost track of what they heck is going on with all this equity raising business. In between escrow receipts, ords, options and warrants I have no idea of where things are at with regards to dilution.

One thing that seems fairly clear is that the debt component of the funding is going to be fairly insignificant (if it exists at all). This is a bit frustrating for any holders of this stock who were hoping for less dilution for the funding of Perkoa I think that this is actually going to be a pretty good result for AIM given that the cash from Perkoa will basically go to the bottom line.

Furthermore, hedging of the zinc price will be at the discretion of the management instead of being imposed by a debt issuer … This will enable the company to enter into hedge agreements when they feel that the price is right instead of having to hedge at prevailing levels (given the fairly bullish outlook that a lot of the mining community have at the moment perhaps they think that better prices can be obtained).

It seems to me that this is the lull before the storm. The trading action seems to be just slow accumulation at the moment which is about as interesting as watching paint dry. However there will come a point where buyers will have to start chasing this stock … I suspect we are not too far away from this (possibly around the time of the EGM).

I’ll be interested to know when they actually plan getting the concentrate out of the hole and selling the stuff (off takes would be lovely as well). Hopefully a lot of this will be covered off at the EGM … I cannot imagine a very nice meeting if we are asked to endorse dilution without any idea of where this is all going to lead.