Hi KL, fair enough for you to have a jibe or two at SYR's...

Hi KL, fair enough for you to have a jibe or two at SYR's fund-raising issues. I guess all we holders can do is try to smile. Then again, we should not overlook the importance of what people such as Moloch, Mainholm, Pedro14 and others have said, above - the money is in the bank, and money talks.

By the same token, there are certainly quite a few holders of other graphite companies - like TON and MNS and MTA - who are probably looking at this situation very apprehensively.

Take KL's favourite stock, TON, for example. They want to start producing early 2017. So someone needs to get their skates on, and get that Nicanda Hill mine running. But, oops! there's a small problem of raising the $200m or so to build a mine. Now TON has about 300m shares on issue. So, somehow or other, they have to raise about $0.70 for each and every share currently outstanding - and that means that current shareholders need to front up with that money, just to maintain their current equity in the company. And the shares, now, are worth, what? About $0.25 - $0.26? That sounds like a difficult sell to me. Of course, if they don't pay, and somebody else does, then their shares get diluted - big time! The money has to come from somewhere.

Can the company afford to just sit around for a year or so, and wait for a share price rise? Perhaps, but where does the graphite market go in the meantime? The real contracts will go to the company which shows that they can deliver the goods.

I have used TON as an example here, because of King Louie's deep interest in the company, but they are by no means alone, and I would not want to suggest that. The same problem exists, in greater or less degree, across the industry.

All in all, KL, I think SYR holders can afford to put up with the odd poke in the ribs about entitlements not being taken up, and stock going to sub-underwriters. There's blue sky above Balama right now, while the grey clouds have yet to be chased away from points north.

Cheers,

Prime1