the newest australian copper producer, page-6

To address those qualms about the company being taken over so as to enrich the new owners and deny the present I have a suggestion:

Invite the directors to make a rights entitlement issue to existing shareholders ..at a discount to the price they believe it is worth today ...and most importantly at a premium to the existing share price.
Let’s say ..today Friday 14th an issue at 35 cents per HGO share.

This would achieve the following:
Immediate ( global) media interest along the lines” what are those HGO directors thinking?” ..
A likely increase in the share price ..a small reward for a sterling effort in bringing the Kanmantoo project into production on time and on budget
An opportunity to place the shortfall arising from the issue to a party who will support the (presumed) directors’ aim of realising fair value for all shareholders

If the share price should increase beyond the issue price then the shortfall will not be so great ..and this initiative ( of effectively stalking global markets for a friendly white knight) may be seen as a short term panacea....so it clearly has some risk.

But given the mobility of capital in global markets and the surfeit of investors in these troubled times looking for a certain, but handsome return it is possible that HGO directors find a friend who views the value in the HGO company ( like me ) at a multiple of the existing share price .