Financiers are concerned about forward cashflows rather than the market capitalisation of a company. Cash flow determines loan repayments. If the POG is sitting at AUD$3,500 at the time of the DFS release, I am sure there would be some option to forward sell 10,000 ounces (or more) of production for $2,500+ per ounce. In a $150-160m or thereabouts capex scenario that would come to (hypothetically) at a $25m gold prepayment, $65m debt and $65m share capital. Another option would be selling a capped royalty. Issuing shares is only in our interests when the share price reflects value (ie north of $0.40)
I am surprised when you make comments about “needing to issue shares as cheaply as possible”. As a shareholder (ie owner of this company) my expectation is that the company issues shares at the highest price possible which adequately reflects the value of the company’s assets.
Financiers are concerned about forward cashflows rather than the...
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Last
16.0¢ |
Change
-0.005(3.03%) |
Mkt cap ! $59.09M | |||
| Open | High | Low | Value | Volume |
| 16.5¢ | 16.5¢ | 16.0¢ | $27.29K | 166.5K |
Buyers (Bids)
| No. | Vol. | Price($) |
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| 16 | 1173037 | 16.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
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| 16.5¢ | 359422 | 2 |
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| Last trade - 16.10pm 09/05/2024 (20 minute delay) ? |
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Last
16.3¢ |
Change
-0.005 ( 1.52 %) |
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| Open | High | Low | Volume | ||
| 16.5¢ | 16.5¢ | 16.0¢ | 190002 | ||
| Last updated 14.49pm 09/05/2024 ? | |||||
| RXL (ASX) Chart |