very true, when you have no income , little cash and want to go to production, dilution through raising cash , reduction in WI, debt or more likely a combination of all three is just a fact and thinking otherwise is to live in fairyland....that doesn't mean the Company can't be successful it just means it will have a smaller proportion of it...it's very much a case of X % of something is worth more than a 100% of nothing...
When I aquired KAS I did on the assumption that there will eventually be at least 2 billion shares on offer to retain the same WI, which effectively means the current MC would be $32M not $16M at today's shareprice...will the MC of KAS exceed $32M, if they get to production and can retain the same WI then certainly...will it do that..who knows. It remains a high risk stock but with a good asset and needs to be treated as such IMO..the price of TIN will be the clincher and it at least is going in the right direction.
When a Company needs to rely on its Management buying shares its in bad shape, its nice when they do but it's not their job and doesn't make the Company anymore viable..
Cheers Whisky
KAS Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
