UNT

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Lord, turn your back on this Coy for a minute and they dilute....

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Rajenp5

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19

07/08/17

13:03

Post #: 26336133
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Originally posted by Fire Bull ↑

There are two things that need to be addressed for this to trade on a decent profit multiple.

1) They need to stop diluting shareholders with all these options and performance rights. Ironically, the performance rights are designed to align the interests of management with shareholders and improve the share price. At least with cash bonuses there is no dilution, performance rights incur both a cost and erode shareholder capital.

I note the 6 million performance rights issued as per this announcement don't even include Domenic Carosa so we can expect another hit later in the year.

Then there are all these bonus options issued to financiers. In fact, the borrowing costs in general are very high given interest rates are so low at the moment. For example the JGB convertible notes were already costing 15% per anum before the extra options issued as per this announcement.

"The headline coupon rate is 6.25% although the effective finance cost (which depends on the facility usage) is estimated at 15.0% per annum, inclusive of cash premiums, originating issuer discount and JGB’s conversion right."

2) They need to pay down all the debt and not borrow anymore unless they can do so on less punitive terms. According to the latest update this will take 14 months and after this they should be able to finance future growth from the $8m cash flows they generate each year but I'm not holding my breath.

I hoped that having an institution on board would help address these issues but this announcement suggests nothing has changed.

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Lord, turn your back on this Coy for a minute and they dilute. LOL. How many times is that now over the last year? 10X? Must be close to.

CM8 Price at posting: 19.5¢ Sentiment: Hold Disclosure: Held
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Last 2.0¢		Change 0.001(5.26%)		Mkt cap ! $24.55M

Open	High	Low	Value	Volume
2.0¢	2.1¢	2.0¢	$46.85K	2.259M

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No.	Vol.	Price($)
4	610862	2.0¢

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Price($)	Vol.	No.
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Lord, turn your back on this Coy for a minute and they dilute....

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Utah authorities sign off on Anson's lithium extraction plans at Green River

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Vulcan appoints investment bank and M&A veteran to board

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

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Buyers (Bids)

Sellers (Offers)

Featured News

Lord, turn your back on this Coy for a minute and they dilute....

Top Stories

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Utah authorities sign off on Anson's lithium extraction plans at Green River

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Vulcan appoints investment bank and M&A veteran to board

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News