Unless GJ comes out and makes a clear and unequivocal statement that all contracts necessary for project development (with accompanying finance) will be in place and signed off before end of June and that these contracts will provide for ongoing funding, the purpose of the 29April presentation is for the exact purposes stipulated in Jill’s email. That is to get the Same ol’, same ol’ “feel good” story out there and hoping for a slight SP increase, then only to be followed by a CR announcement. To come with the same story which we’ve heard over and over, namely: “negotiations are in an advanced stage” just won’t cut it anymore. SH’s have had a gut full hearing the same story and the MARKET is confirming this.
In absence of a clear announcement to the above effect we must ready ourselves for a further massive dilutory CR because this company is running out of cash at the rate of knots. On my calculations and as mentioned in earlier posts I cannot see that these guys can delay a CR beyond mid- May. No matter what form the CR will take, SH value (especially those that have been in here for a long time) will be further depleted.
GJ needs to make one statement only: “Yes, all agreements WILL be concluded before End-June”.
Anything short of that, expect the worse.
Sorry if this sounds all negative but we must face reality.
SDL Price at posting:
9.3¢ Sentiment: Hold Disclosure: Held
