raccoon, as a former holder, I am not so much keeping up on the company, but it is interesting that MOY has said it isn't much interested in increasing production when POG is low. I noticed that at the gold lows, many companies were making "record production" ANN's, but it didn't do much to the share price, because more production at lower POG probably doesn't affect the bottom line much.
Re the share price staying above the raising price, well, it may need to, because there is the activist shareholder around, who is suspicious of IMC's intentions, and is not afraid to make a claim (has done so in the past), around IMC and MOY takeover. So, if the share price fell too low, he could then claim that the company had no intent to have regular holders participate (have seen this with other ASX companies), and therefore, IMC would get the lion's share of shares. My thought are that the price may hover around here until the raising is done.
It is a 1 for 21 raising, so $21k is needed to take up $1k of shares @ 32c. These kind of raisings are meant for the big holders, such as IMC. They really will get most of the shares. Then again, it is underwritten, and perhaps the most important thing is that MOY is cashed up.
So, how will MOY go in share price when it has the cash and the raising is over? From what I have seen, IMC buy on dips,and then the share price rises again. Does anyone know if/how the capital raising and IMC getting new shares, affects their creeping ability? Are these new shares not considered a part of the creep, and so they can but more now/soon, or does this reduce their capacity for a while?
MOY Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
