MulgabillYou have to look beyond the blue sky potential. Blue...

Mulgabill

You have to look beyond the blue sky potential. Blue sky is a best case scenario. Just like the onshore and offshore oil was. Just like the $1.1bil funding was.

Those were all blue sky scenarios that if successful, would have done wonders for the share price.

But in order to reach blue sky potential, you need to fund to operations. If each diamond plant still costs $30mil to bring into production, where does this money come from when the market cap of CVI is approx $7.5mil? It couldn't come from capital raising as you would need to raise 4 times the current share issue (or 2bil shares). Which means it would have to come from a joint venture or debt funding.

That was the plan with Pensador - debt funding with a claw back option to recoup some share of the business back to CVI.

It didn't work then, what makes you think it will work now, especially when in the current economic climate, people are scared to lend money (especially to risky speculative operations) and there is a lot of uncertainty as to what the economy will look like over the next few years.

This will be similar for many specs. A lot will need money to survive and they will find it hard to get the money in this climate when their earnings are now a lot less then 6 months ago.

But it will be harder for the ones that have not yet delivered on any of their promises/expectations, like CVI.

I'm assuming this is one of the reasons a lot of the board members are starting to leave as well.

Cheers