So , I have read 99% of the posts today. I opened my browser and clicked on the ASX FFX page to see a new announcement had been made and in that second I thought... it must be the FID. But when I saw that we are having another cap raise, I thought , oh no.
I simply had no cash for the last one.
Anyhow, my conclusion is that the new raise is a good outcome for us. When the new DFS came out it became clear that we would need more cash for various things. I think the BOD just 'struck while the Iron was hot'.
If as Manny says, the refurbished SAG mill will help with the processing of low grade ore , then we really had to do it.
You see. I'm not a young man anymore - so I can't wait another 10 or even 5 (or even 2) years for things to happen. That may have been the case otherwise at Morilla, and we have to fund our share of the new costs for Leo.
IMO we have to increase production at Morilla as soon as possible and in so doing hopefully increase profitability at Morilla in order to materially increase the overall profit of FFX , which will allow further investment into the FFX business and ultimately share price appreciation and dividends and a quicker acquisition/merger timetable for FFX.
On the dilution. Yes we had some 300 odd million shares on issue, but we also had very little chance of developing the company, let alone keeping the lights on at the Aussie company office. We have had a lot of dilution since then - but there is no choice here, we must absorb some dilution to grow our business. = Go the LTR road and dilution or go our road with Gangfeng and reduce our share of the project.
So , great job so far, both our doctors and the board as a whole , they have bought us on a long journey (in a short time since the Morilla acquisition), with prudent management , I say that because to Me , they are getting things done as quickly as possible in a conservative way by taking advantage of the current easy cap raising climate. Yes I agree some of that is the 'New' Lithium sentiment, but remember Alister Raised some $74 million (can't remember exact number), not that long ago for the gold side.
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