You see far too many that get caught up in fear of capital raisings (FOCR's).
There is a 100% chance that every pre revenue company on the ASX will at some stage need to raise capital to fund the building of their business. This is hard fact, if they didn't need access to capital then they would not be listed.
GMR are no different, they will need ongoing access to capital, mining will be many months/years away and before they even think about that they'll need to raise the capital to prove up a the resource and then fund the transition to being a producer. Access to capital is one of the foundations for success in an exploration play. If you have to keep raising from flighty retail investors the the register becomes rubbish and makes it hard to build value for shareholders as a whole. LHC Mine Finance Ltd as the name might suggest are all about financing mines and have heavily supported the last financing, my thoughts are they will likely become an ongoing funding channel who introduce sticky investors.
IMO the FOCR's should find a producer to invest in if they don't have the stomach for the inevitable need to raise capital in the early stages of a company's journey.
GMR Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
