I think some of you should look at the long term picture...
A little cap raising now to sure up the drilling.....move the project along faster.....not have to HOPE for option conversion funds is a good move imo.
Lets say they cap raise $15 mill at 10c
$15 mill
$5 mill still in the bank
$40 mill from options Sept 08
$60 mill total
Allow $15 mill for...
Company split costs
Drilling/manpower etc etc
Perhaps consolidation of shares costs
Lets look forward to end of year......
300mt has been proven up
$45 mill left in the kitty
Allow $35 mill for mining setup
$10 mill left for incidentals/management/etc
So we would then have......
A mine setup and ready
300mt iron ore
$10 mill in the kitty
MC right now (after cap raising) $174 mill (fully diluted)
So ask yourself
A mine setup and ready to go
300mt proven resource
$10 left in the bank
What is it worth??
$174 mill....lol
No.......At a guess $600 mill or 40-50c per share thats a s takeover cost at $2 mt
if they do mine it themselves.....who knows
Need to look at this as Mid term hold
not week by week or day by day
that was all good when the anns came out and we traded from 1c up to 14c
Mid term hold.......Nov/Dec minimum imo
50c party by then or 3-400% return on current SP minimum
Cheers
FDL
flinders diamonds limited
