the point of the consolidation is that they otherwise could'nt have raised $60 mill in Toronto to buy Harmony's gold porducing (and cash producing) assets with 689 mill shares on issue. The TSX only lets you list on the main board with substantially fewer shares on issue.
What we get in return though, is a 100,000 ox producer with no hedging or debt, 2.5 mill+ ozs and all in a rising gold price environment.
I think you will agree, thats a better position than being an explorer with a 49% interest in a 900,000 oz resource with a $20 mill+ development cost ahead of them and still no plant.
These guys will make $40 mill+ free cashflow over the next 12 months....
Wake up traders, this is good news not bad news
the point of the consolidation is that they otherwise could'nt...
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