@@ozblue I hear what you’re saying, however lets consider the implications if they did go into a TH - Suspension
They’d still be in Suspension when they announced the updated DFS. Then after that release, they’d do a cap raise (while still in suspension) based on the last days closing price and preceding 10 day vwap.
It closed at 75.5c gaining 5c that day (Dec 1st), the previous 10 day vwap would have been below 70c. So they’d have to raise (with hindsight) some where just below what they actually did at 67c. On the surface that doesn’t sound like too bad a result.
Now can you imagine the shareholder complaints if they raised after the release of the updated DFS without giving the SP (hence raise price) a chance to appreciate based on the DFS. Management & the Board would rightly be crucified. They weren’t to know the SP would actually drop, they and I don’t think anyone here would have picked that.
And what if they decided to use the debt facility not do a cap raise - at that stage they hadn’t decided, how angry would SH’s be then?
All very well to sit back with hindsight, the Board had to act to give the best outcome for shareholders.
As I said they were stuck between a rock & a hard place - there were no good options.
When you are in business you can’t be Mr Nice Guy all the time, you have to make some hard nosed decisions.
Look at eg Andrew Forrest. I don’t like the man, but have owned FMG shares in the past. He personally would have one of the biggest carbon footprints of all Australians, yet he flies to Glascow (in his private jet) and tells the World they have to reduce their carbon footprint. He wants us tax payers to fund his Green Hydrogen business so he can make even more billions while he sets up his LNG import business (fossil fuel) and dams one of the biggest rivers in Africa.
Not exactly the most trustworthy guy, would I buy shares in one of his companies - you bet.
