Dilution is a bit like marmite, you either accept it or loathe it...
in some situations it is the only way a company can survive. companies like Thor who have no income need cash to drill, explore, confirm resources, keep directors warm & cozy ;-)
the way I see it, if i'm invested in a company & it needs cash to survive I always prefer dilution to losing my whole investment & in some cases when i'm happy with my research I will take part in the cash raise & i have done this twice now with Thor.
dilution is bad when value has not been created for all shareholders, dilution is good when share value is created for all shareholders.
Yes Thor have spent seemingly too much on administration however they have clearly added value;
-Molyhil resource has increased, ore sorting & other efficiencies will improve returns, they have found a quality buyer for 70%, more cost savings are being explored, following finance we are 12 months from generating an income.
-Spring Hill resource has increased, ore sorting & other cost savings will improve returns, mou signed with processing plant nearby, we are less than 12 months from generating income.
-Dundas location & early drilling show promising potential for creating value for shareholders...
compared to 12 months ago that reads like increased value for shareholders to me, yes the risk remains but value added clearly...
holding & looking forward with optimism to the next few RNS's & the next 12 months.
gla
MT
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