I do have sympathy with your views on this. Ultimately I think the correct decision was made to expand and more fully occupy the plant as well as do some de-risking. It took me a while to come around to this view.
However, like it or not the sp is trashed because of the raising. It should have bounced by now as short term profit takers have had time to exit. No way for Bob to know this in advance. Most stocks don’t behave this way.
As was pointed out, HGO has had a history of nasty surprises and the CR was one of those. So understandably buyers expect another nasty surprise down the track and are pricing accordingly.
I think the CR provoked such a strong reaction because some holders such as me were already disappointed with Lachlans decision to raise rather than debt finance the startup. That was a bitter pill. In the end a wise decision as the debt would have been expensive debt and a mine outage of even weeks might have finished us off. However after accepting that I never expected another CR so soon . A real surprise.
HGO Price at posting:
3.6¢ Sentiment: Buy Disclosure: Held
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