NVA 0.00% 25.0¢ nova minerals limited

Recent interview with CG regarding Q4 outlook and the capital...

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    Recent interview with CG regarding Q4 outlook and the capital raise (9m 24s for cap raise):
    Key points:
    - $8 million was in the bank at approx burn rate of $2 million per month.
    - High demand to "get into NVA".
    - Over $140 million in mandates (Some debt - CG believes its too early as it should be used for Feasability and Construction funding.
    - CG believes it was the right time to do this cap raise due to future uncertainty on equity markets around the world. Due to this he believes its not a good time for debt funding.
    - Other deals involved "way too many options and other components that the board were not interested in".
    - The recent cap raise was a "quick deal" and "the best deal", partly due to the share price having a recent uptick from the recent news flow.

    I do agree with some of these points. NVA shareprice was sitting at 10-12c for a while, and although this recent newsflow brought the shareprice up in the region of 14-16c, the demand IMO seemed to have been slowing down - The bids were slowly dropping increment by increment, but the closing shareprices would jump 0.5 to 1c because one person would buy 500k+ shares at 14.5c, bringing it back up (Where in reality without that large buy at close the shareprice wouldve likely closed in the 13c-13.5c region. This is just my opinion, those few announcements on a weekly basis brought some buyers in, and days after the buying gradually slowed down.

    US Fed will begin tapering which puts equity markets at risk of a potentially significant pullback over the next 3-12 months. In a way it could be considered that this quick cap-raise was a form of hedging against uncertainty. Mining small/medium cap stocks take significant hits during stock market pullbacks. US markets continue to reach ATH's but it seems to have reached a plateau', a pullback is on the cards once tapering begins (Information about what tapering is and its repercussion's on global markets can be found online via basic research).

    Nonetheless I still do believe the approach in which the cap raise was conducted is questionable, as do others'. As I said in another post, I just hope that the 11c raise is worth it down the line. Plus, NVA long term are still on the right path to rapidly "unlocking" the Estelle Project. I anticipate LT shareholders to be rewarded handsomely as the resource increases along with the gold price most likely reaching ATH's in the near future.


    My comments are all my opinion, so for those who may disagree with some of my comments, I have already read the opinions of others on NVA forums since the cap raise was known, and respect all opinions along with the dissapointment from many shareholders.


    YK
    Last edited by Ykrash: 28/09/21
 
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