What were they thinking, square away $16m cash, to non-holders who will simply want to flick for a small profit.
If they can't hold the price above 11.5 the rights issue will be a disaster. Any left field shock to the market and the SP will fall below the 11.5 and they miss out on the extra 10 or so mil.
I'd be keen to know:
1) what % are the directors taking up 2) what are the actual cost increases on site - they burnt through $11m last qtr 3) why did they not do a larger rights issue and a credit raise later 4) what discount did Glencore get for the pre-purchase 5) what interest rate will they need to pay for the senior (the proposed lenders won't like the sp at the raise price)
I think the company has great assets, great technical IP, but this shows they have absolutely no loyalty to existing shareholders and have misjudged the market. Exceptionally disappointed with Barry and Co.
I could have participated in the CR but chose not to after thinking this through. It didn't sit right with me. I know some will not agree, but I think this is really poor form to offer more to non-holders after many have bought at substantially higher prices and are holding large losses.
11.5c is close to the dreaded 10 c bottom where we fall into a .1c pip that is often difficult to climb out of.
I am a medium and long term bull on copper, but short term it is under pressure. Xi also announced that the zero covid policy will remain until 2027 (can't get a home made effective vaccine until 2026 earliest), so this means more lockdowns and disruptions which will have some affect on Cu. CYM SP will rise and fall with the copper price.
In 2025 this will be a good asset, I just hope they don't f@ck up the corporate side along the way.
I've changed my sentiment to Hold.
CYM Price at posting:
11.3¢ Sentiment: Hold Disclosure: Held
