G79 (ASX) Ann: Strategic Investor, Equity Placement &amp; JV Partner for Caula

Originally posted by pe981: ↑

Getting a bit confused. You are now saying you are a long term holder having been through the trials and tribulations, yet a few days ago you were baffled at the negativity, thought the Company had plenty cash and onwards and upwards. You have been saying it is worth a punt because it is "cheap" and are justifying that by an implied value of remaining assets due to recent deal as some sort of fall back position
It is correct that MC is very low, however you are not buying a house where you can (hopefully) sell up and get your money back. The simple proof of that is the recent sell off of over half the company assets and none of that money will be seen by shareholders and very little used to progress anything. It will also limit the ability for retail holders to get anything meaningful from any asset sale (such as a takeover)
Plenty of Companies at this end of the market end up diluting retail holders out of existence regardless of supposed asset values, however NXE have taken to a new level by selling control of it's main assets via an asset holding company and further capital raisings will see the operating company heavily diluted.
I have no problem with your support of this company, just cannot understand your logic suggesting to others it might be worth a punt because of this supposed fall back position
I gather from your lack of comment that you are happy with the sale of 50% (& control) of Balama Resources?
It appears to me that if Caula is eventually developed then current retail holders will have very little involvement.,............

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Hi PE891 yes I am baffled about how negative people are because I think that I have seen this situation before in Texas and in Mozambique and the company has survived. As to the sale of 50% Balama well of course Im not happy but I understand the concept of sacrificing something you would rather hold to try and survive against holding on to everything and going under. In the movie the Rise and Rise of Michael Rimmer, The British discover North sea gold and the British prime minister is standing on a north sea oil platform holding a large ingot Rimmer pushes the PM into the sea and he sinks to the bottom unable to release his grip on something so precious. Very funny movie.