Hi FolksMy thoughts 123enen. I was thinking about putting a few...

Hi Folks

My thoughts 123enen. I was thinking about putting a few questions out there and fortunately someone already has.

My concern is the share dilution pressure inevitable with a long time to production.
I realise that the low cost to production is a bonus but it still means dilution an/or debt.

Based on the low cap spend to production, the hope for Cethana, and the 3 year timeframe to production, how can shareholders be confident that the rising MC with added value isnt considerably wiped out by massive dilutionary pressure.

For arguments sake its no good going from around a $70 million MC and 47 cent share price now to say 2014 with a 1 billion MC with 1.5 billion shares on issue equating (I think!) to around 75 cents a share.

I use the above as perhaps an ordinary and uninformed example but one that has been played many times with other companies and decisions made in raising capital via share placements...whether they are with retail/current shareholders or not - the fact will remain that dilution = less share price appreciation.

Could a Cethana sale (if appropriate) save shareholders and the company from the issue of more shares that will inevitably be better for all concerned?

I have confidence that PLV will be successful at Irvine. Thats why I invested. I guess the dilution is the thing I am not confident about and see as the major barrier to strong share price returns.

I realise companies are rated on MC by the market. I rate companies on return to shareholders...and after all, it takes risk, and high risk at that, to back a company in in this environment of uncertainty.
One wants to be sure that the company he/she has invested in will enable the best possible returns based on that risk.

Thoughts please :)