All proactive shareholders should let IGR directors know of their displeasure if as I suspect this cap raising is for ramping up production.
The MD and his henchmen have been running around town telling gullible shareholders how they will soon have $50 million per annum of free cash flow and what wonderfull wealth creation they can embark on with that stash in the bank.
I personally heard Chris Cairns answer a question from an investor who niaively asked if we could expect dividend payments from the company. His answer was along the lines that gold companies usually do not pay dividends but rather reinvest in growth. Fair enough I thought and expected IGR would do exactly that. Now a cap raising announcement - I am floored.
If there is insufficient cash flow at the moment to fund growth then IGR should wait until there is! It is basic folly to dilute at the high cost of share capital just to bring forward growth by twelve months. Any first year business undergraduate could tell you this.
This so called promising company is rapidly becoming just another stuff up in the Oxianna style with lots of rhetoric and very little delivery. Where is the production numbers foreshadowed, why bother to do a reserves upgrade when the results are likely to be disappointing, where is the company support from institutional shareholders etc.
We shall wait and see what the justification for the cap raising is, but at this stage I have a very uneasy feeling about where it is all heading.
Oh and by the way as for the gushing from some posters about the business nous of CC et al, you might be better served by waiting for results before giving undeserved plaudits. As for name droppers and Xmas party goers offering advise - well that is just downright pathetic.
IGR Price at posting:
52.5¢ Sentiment: Hold Disclosure: Held
