There could be stiff competition for that job smackdaddy.
In relation to CR talk, I've noticed that James has
pointed out a few times lately, when answering questions regarding finance. He talks about how things have totally changed since the one and two cent day's a few years ago, and a CR at current price's is not so much a concern because the dilution is less severe with a higher SP.
I was one of the people strongly against further dilution, but now I agree with James because of the strong SP it's not such a big issue.
Imagine for instance, let's just hypothesise a possible scenario whereby each SH was asked to subscribe upto 10000 dollar's at an issue price of 50 cents per share, with one attaching free option also at 50 cents exercisable in 12 month's from the CR date.
This cheap option exercisable in 12 month's would be a kind of reward for loyal SHs, and probably the very last CR we might ever need.
With 10000 Shareholders on the books, that would raise over 100 million. For a total of 200,000,000 shares, and in 12 months we raise another 50 million dollars with the exercise of the option for a further 100ms.
To put this in perspective, we recently raised just over 10 mill for the issue of over 800 million shares. That was a huge dilution but the SP didn't react negatively infact it was positive and contued to rise.
BTW just to be clear, James hasn't said a CR is certain he just mentions now that it could be part of the mix.
So in this situation we raise total of 150 md at a dilutive cost of 300ms.
With the Extra funds raised we could possibly increase production very quickly by simply increasing the plant size. With the increased revenue plus the option exercise 12 month's after CR, this could Allow us to start a HPA plant at mount hope, and go it alone instead of having to worry about a JV and our revenue possibly halved.
If the New plant could start producing sometime in 23 probably at the end, it would possibly put us 12 to 18 month's ahead of where we might be if we needed to pay back debt.
No urgency for a CR so this could be done closer to the DFS or soon after.
With Finance sorted and no debt, possibly some BOAs signed and possibly the mining license granted our entry into the ASX 300 would be I think we'll received.
We would be a much more mature fully financed company with production just around the corner.
I also like this Idea because dividends could be also possibly paid 12 to 18 month's sooner.
Just a reminder this is all IMO just a hypothetical bit of fun, but at the same time serious food for thought nonetheless.
Time to relax and enjoy a lazy Saturday .
I must admit though I'm very excited by this Gem of a company we were all lucky to find.
I wonder if I can find a bottle of Moet here in China while Im stuck here waiting for a flight out of here.
it's actually not a bad place to be stuck really.
Cheers.
(20min delay)