If you are interested in dilution (
@jefferies2 I know you are), look at my post in the management mix thread. Better still here it is.
Your share are being diluted by over 50%. That's pretty significant yeh
"BTW, if you look at the accounts (do read them, fascinating), those to June show annual admin and corporate costs at $533K. With exploration activities at $339k, they are burning through $833 pa (and that's with the minimal exploration activity to date). With $1.8 m in the bank, they will burn through this in 2 years or less !!! This was the dough from the 133,333,334 shares approved at the AGM that were put to the market at 0.015c. Gee, wish I got some of that action. Retail shareholders didn't get a sniff - just their corporate friends. Doubled their money in a few months.
I can feel another capital raising coming ................ oh,that's right, the issue which will raise $380k to "reward shareholders" (that's a joke).
Will that be enough. Oh no ! With the deal with Cerium P/L (yes its GBB in disguise, it's a Tanbreez linked company) they have to fork out $20 million (yes million) in various tranches up to the feasibility (look at the figures in the report to the AGM, again public information). FEASIBILITY not production. What a deal.
But wait, there's more. Cerium gets 62.5m options excercisable at 0.015 (so sweet) and 32.5m options at 0.05. That will raise $900 K and $1.625 in three years time (phase 2). Oh dear, that's a long way off assuming the options are excercised.
Then there's another 180m shares at 0.015 and 160m at 0.05 in three years (phase 3) for, guess who, Cerium. That's a long way off too.
So how are they going to fund the company ? The only way is to continue to keep coming back to shareholders for placements because they have no production and no other funding sources (unless they go for debt which would be hard to convince a bank)? They could always sell tenements.
So Cerium is handsomely rewarded while the poor shareholders will just continue to fork out (little wonder GBB is so negative on GGG eh?) and the Directors get massive "performance shares". PLUS, there is massive dilution with the above issues.
Just for interest, what is that dilution ? So, add 133m shares (placement), 345m (placement to Cerium, at no cost) and 435m options. Oh, and employee "performance" options total 27m shares. So, on a fully diluted basis and prior to all of these occurring, all these placements will dilute the shareholder base by 50%. So the value of your shareholding is diluted by that amount.
Oh goodness, forgot to mention the 3.5% net profit royalty that goes to, guess. Cerium.
So a well run company ? You make up your own mind.
Does this put GBB's position into some form of perspective ? Wonder how much he paid for the tenement in the first place ??"
(20min delay)