I like this company but I'm not a huge fan of their regional drilling program. This costs money, ties up resources and is high risk at a time when funds are short. Sticking holes into Waverly should be something for the boom times.
If I was running the show, they would be dropping 1,200m+ drill holes down into the "main game", the Morning Star mine.
There is more upside in finding what lays deep below this mine than punching holes in the local Dykes.
As well they shouldn't be regigging the options either. Thats the risk option holders take, so stop trying to artuficially make money for the holders of them. What can only assume its the big option holders who took stock at 30 cents (I think is the price) who are being hit up for more funds and they want their options restructure. I mean why the hell would you being doing it unless its to square things away for the big hitters who put money in at 30 and took a pile of options as a reward for doing so.
I think I'll wait until the detail comes out before I venture in again. Somebody knows the pricing it seems and is cashing out while NG tries to hold up the share price to stop his raising being blown up.
He should have put it in a trading holt while he completed the rasing and then he wouldn't have to be playing the lone ranger in the market.
Its true, the company should not have let its cash resources run down this far. For all me know, it could be at close to zero in cash after bills are paid. If the folk looking to put money in know this then it could be a steep discounted raising.
A rights issue for all shareholders is the appropitae thing to and bugger the option holders.
MCO Price at posting:
12.1¢ Sentiment: None Disclosure: Held
