Well, we have had some enthusiasm on the forum recently, whilst it is good to see, I would encourage others to temper it a bit. That said, I feel like CXO is on the precipice of some SP improvements depending on what we see in the next round of announcements.
I called management last week to express my views on not issuing shares to LTR - issuing shares to them is not just paying our obligation, it is issuing them leverage. In business, you do not want anyone else having leverage over your operations. Giving them 30-40mil shares provides them a fair bit of flexibility to play with CXO. They could dump them all as soon as they get them (which wouldn't get them a great return on the total amount), or they could drop 10m or so on the next 4 announcements, or they could hold them and drop them later - the fact of the matter is that we have no control over what they do with them once they are issued. Dropping 10m over the next 4 announcements, or waiting, would provide them with the maximum return on the issued shares in CXO, but would kill any upward momentum attributed to the strong announcements we have coming. I would much rather we pay them the 1.5m in cash, and if another raise is required later in the year to make it back, then so be it. I would support the next CR if that was the reason why it was being conducted. Any subsequent CR (by paying LTR cash next month) would no doubt be conducted at a higher price, which would limit dilution.
I have no idea what they will do, but I would not have them make decisions without at least knowing my point of view on it. I have voted no to nearly every resolution in the upcoming vote (with the exception of issuing shares to Malcom - I am pretty happy with that development), as I do not want to provide management with the flexibility to issue more shares without shareholder approval. I think issuing shares is the easy way to conserve cash, but they should IMO demonstrate confidence in their project and back themselves that if they need cash later in the year, they will get it. We have a strong project here, with excellent fundamentals - it will be impossible not to see the value and investors will take notice.
Any issuing of additional shares now to LTR will negatively impact the market cap and our hip pockets. I am opposed to this as an option and used my voting rights to reinforce my opinion.
The next few weeks should be very interesting for CXO, and I am hoping to see some significant upgrades in our resources and some good numbers coming out of the DFS. Just for clarification, we are waiting on an upgrade to the Definitive Feasibility Study that as issued last year and not a PFS that I have seen mentioned a few times recently.
GLTA - if you have a voice in this company, then I would encourage you to use it.
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