Hi Folks
Not surprising and they have taken the opportunity of positive sentiment to raise at what I imagine will be around 20c which is less dilutive than if it happened weeks ago.
The reality is the guidance wasn't flashed as it included Duckhead , which suggests Tucano needs a higher gold price to spit out meaningful cash
I think the move is reasonable , it does take away upside by adding what I imagine will be maybe 100m new shares which will raise about 15 m usd , but it also reduces risk. In my view its a neutral outcome and although is may reduce upside for a few months it protects capital by strengthening the business
The stock has increased at this stage due to sentiment on gold price and the increased margins , but the forward guidance wasn't great so the raising is important imho
BDR Price at posting:
24.0¢ Sentiment: Hold Disclosure: Not Held
