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14,167 Posts.
118
13/12/08
10:20
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we need $1082m, don't we?
a 1 for 1 @ .30 would raise $978m
6500m shares divided by $600m is about 9 c a share
the following year $1bn or 15c
that is about 66% growth
but lets assume a growth rate of 10%
and pe of 10
peg = 10/10
fair value for the shares might be 90c (9c x 10)
based on 55c our shares would be worth 42.5c
to get to fair value our shares would have to go up 111%
so I reckon they should do a rights issue
based on the condition that all efforts will be made to make the company cash positive
eg close mines fast and hard
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