DML is raising money to get their mine into production.
As you probably understand having copper in the ground but not getting it out, add little value to a company and its shareholders.
By going to the market to raise money and bring this mine in production the company starts to unlock this value.
Every step in the process of getting the mine into production adds value and should give it a higher Marketcap.
The BFS, DFS , the cash raising, the building of the mine and first commisioning and so on, add to this value curve.
So by issueing more share you are dilluting your holding, but the added value that is getting unlocked during this process will actually add to your shareholding value.
So to put it in short adding shares at a discount price will more then outway the dillution effect as those new shares are helping to unlock more value in the company.
Not adding to your holding means that you loose out, as the company moves from explorer to producer and will be valued accordingly.
And as a foreign holder who can not participate in the SPP, you had today the opportunity to get them even cheaper then the placement.
Hope this helps
good luck
jojo
DML Price at posting:
$1.05 Sentiment: LT Buy Disclosure: Held
