Lotz, shares purchased last week will be entitled to their rights to purchase 1 new share at 5 cents for every 5 you hold.
The rights have an intrinsic value of about 1.6 cents because the diluted price fo the shares which traded just above 8 cents on Friday is now about 6.6 cents (which is around what the market thinks also without any new ASX releases or other positive news).
No one has put their rights up for sale (on market) yet so we won't have a real value until some sales are made. So essentially you have not lost any value by the shares dropping.
Once all the placements and rights are conversted the Company will be in a strong cash and project position going forward. There is some dilution of value because the placement and conversion price is only 5 cents. This price is positioned to ensure full uptake and receipt of the cash which will be a positive market outcome.
The share price should be bolsted by the new cash position and release of the Scoping Study Report. We can be reasonably sure the Report will show Phillips River is a potential 10 year plus project with earnings that would value the shares in the high 30 cent range (discounted for the fact that it is not yet reached production or even funding stage).
The Scoping Study should push your shares back well past Fridays close and eventually up to 13-15 cents moving towards the BFS.
That how I see it.
Add to My Watchlist
What is My Watchlist?