Looking back to the SP last Friday, it closed at 65c, this...

Looking back to the SP last Friday, it closed at 65c, this number reminded me another critical price point that VanEck (for new joiner, it was about FFX being added to one of its ETFs that comprises a number of gold junior companies) purchased ~50m shares (65c, around $30m, this number also reminds me the size of the current SPP of $25m, with potential oversubscription) in that grand after-market auction:





And now we have a SPP offered to shareholders at 58c (~4% SOI and capped at $30k).

I guess that's something to think about – the company needs funds until reaching a more meaningful throughput and the company offered us retail this SPP (with no obligation – i.e. non-transferable/marketable call options), the amount of costs (things like prospects, many B-bay / cheque and relevant admin work all stack up), time spent and hassle of outcome (oversubscription – take full vs scale-back; undersubscription, risk of bad outlook to market as well as insufficient funds to proceed) vs doing the placements to institutional investors is likely a lot greater (quick and guaranteed outcome based on negotiation behind the scene).

And yet they still chose to do so (again, VanEck committed to purchase $30m around 65c, just 1 month ago, so I believe there is sufficient capacity sitting around to soak up $25m of FFX shares at 58c from various institutional investors combined, without ANY retail involvement necessary), showing a bit ofcare and goodwill to the small end of the town.

So to me, it’s really not this SPP that is a bad thing (fund use, size or price etc) on its own, but the communication and 'perceived conviction' from the management, and I feel we need more details on the progress we are making – small things like onsite photos / commentary on the importance of early capital work / more regular webinar etc will definitely be something I am keen to see and also a constant mindset of closely managing cost, schedule as well as general expectation of the market over the course of this ramp-up period.