Yes, seeing the listed shares sits already at 2.3billion or so. If they need to issue more shares to fund the build it could be very extensive dilution.
Surely they could get more loans or payment in advance for product from offtake partners even if it means selling some at a discounted rate? I notice Lynas only has 950mil shares listed and Mountain Pass is something like 160million and they are sitting at around 6.4b and 5.5b MCaps. How did they manage to get to production with such smaller amounts of dilution?
Like I have stated previously I am certainly no expert, and you wont find me here arguing back and forwards with anyone. I like what I see in terms of the resource and its viability, the dilution is going to be what makes or breaks the stock in my opinion. But I want to learn as much as I can about the stock and how its expected to evolve, so I am all ears to any factually supported information anyone has to offer.
I look forward to your analysis next week, enjoy your weekend.
ARU Price at posting:
12.8¢ Sentiment: None Disclosure: Not Held
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