capital raising, page-6

I'd love to jump on the 'good management with a good story can promote and raise cash' train but I honestly think that's being a tad generous. SS is a project of some long term value, if only for copper bull optionality, after all Max paid $26M to Straits for it in 2011, plus 250k offtake rights to Toho. Regardless of who or how much has been burnt before, of course any management can keep raising working capital on an 'asset'. The question is at what price, and near record low prices is nothing to be proud of.

So Max the UK banker helped buy SS at the top of the copper market... but who knew right.


Raised $37M in Jan 2011 for the purchase and working capital at 9c (pre-consolidation of course, thats 90'c in todays terms). You know how juniors spend and feasibility studies disappoint, raised another $11M from NST one year later at 4c... Billy must have thought he was getting a bargain. I haven't counted how many CR's since then, thank god I only got involved beginning of 2019. Jesus, why did I get involved in Jan 2019....

Share price tells the story of multiple failures and the realisation that management bought a much higher cost project than they thought. Sure the EPA knocked VXR around last year with delays, but why did AJ leave, and why the $42M capex increase was released not long before this CR?



Aside from who knew what when, long term funds need to average down at very low prices, management need to re-set performance shares, can't be done at high prices. Congratulations to new holders jumping in at near record low prices this CR, well done. Very few juniors haven't bounced at least a little into this rip your face off rally, just another tick for management not. At 5c, a market cap of $15m and an asset worth considerably more, of course VXR can raise more funds from a conga line of soph's, brokers and existing funds been standing back since AJ left for the chance of a cheap refill. IWonder why VXR has had no buying support except retail mugs (not me btw, I did advise holding off). It's insulting to suggest management could have done it any lower or not at all, it's rock bottom. What will retail get though I wonder.

I'm not going to call management 'lifestylers', but 10 years now Kiernan and Reilly have been feeding off this 'asset'. $250k per year in Max's case. Just can't shake that $42M capex increase from my head though. AJ had his fingerprints all over it but the timing pre-CR by Max also seems odd. Sure it needed to include new TSF changes but we were told that would be capex/opex neutral. Bloody tough when you're being sold one story but it turns out to be another.

Anyway, good luck to the new crew not burdened with averaging down, certainly looks like cheap buying if the next copper boom is around the corner. No doubt we'll find out the deal tomorrow.

Good luck