RFR summary, page-7

Cheers. I looked at this yesterday and decided to pass (for now). The IRR on the project looks great. I think using a NPV 8 instead of 10 and prices at 240 instead of say, 220 make it look a bit better but I guess that’s offset with the limited scope of the study and only including the open pit. There’s also the upside from other exploration. The big unknown for me is the LOM and I can’t see too much cash generation as free cash flow from Spain will likely be used for other drills and projects. That’s not necessarily a bad thing as that could lead to a higher SP but it’s worth noting.

But my main reason on passing is that the company have shown their hand that there will be an imminent cap raise as they’ve paid for broker report coverage which came out yesterday, they’ve paid HC to do an email out today and they had the announcement yesterday. They’ve tried to re-rate the stock higher to limit the dilution - smart strategy but I think the market has worked it out. Why buy now when you can possibly get it for 15-20% cheaper?

The key thing to look out for will be the strange trading that pushes the SP higher. That’s the broker doing their bit to play games with the VWAP, discount and raise price. When you see that then you’ll know the raise is close. All IMO of course.