Market Cap and Dilution

If you invested in this:



And thought the idea was worth $100M then you would have paid 3.33c per share, there was c.3B diluted at the time.

Well, that has morphed into what LPD has to offer currently. If you are a believer in 'invest in mcap and don't worry about SOI' then this post should clear up the issue for you, dilution.

The equivalent share price today for $100m market cap is 1.33c due to the mind boggling amount of shares being 7.5B (diluted). Your holding would be some 60% down on the initial investment although retaining the same MCAP. Any sane investor will realise the issue with that position being significant wealth erosion.

Also, earnings per share have been decimated even when considering the increased throughput of P1. 3000 to 5000 increase of LCE but at the cost of 3x share dilution (potentially more)? Sould have stuck with the original plan!

In summary, any dilution event is seriously detrimental to holdings for multiple reasons. Unfortunately in the short term consideration has to be given to future dilution to the tune of $18M (Edison estimate). Given the debacle of the recent one, the thought of another is worrying. At what cost will that one be?