too much value being given away

I really am surprised at the level of chutzpah here – BBY have to be taking the piss.

This is not good enough.
How can the board justify:
a.) Discounting the capital raising at 25% to [rough] 10 day VWAP 16c. Surely it doesn’t deserve discounting if QOL are virtually risk-free – I note they didn’t insult us by quoting the raising was to “sophisticate’s” as its hardly needs any sophistication to invest on something with such vapid risk – new & complete plant, defined resource, signed offtake, metals in hot demand….

b.) Not defining their working capital needs to its shareholders in the ann. Op cost $75 tonne processing 150k/t is just under $1M month. And leading on from that-

c.) Not mentioning the anticipated number in the second tranche of $9.5M. Surely they don’t need more than $2.5M for next couple of months? Then why do a second tranche? Unless they want to start on capital for Cannindah, but that wasn’t the stated aim of this.

This is just not the good disclosure you expect from a company with a Corporate Governance Statement aimed at installing confidence in the company.

So what is so wrong with this dilution:
1.) The need for working capital beyond $2.5M. The board have been disingenuous again. The 18/4 ann. boasted “No Debt and $7M cash” – if that was true then why would they need MORE working capital. Short of being untruthful, certainly misleading. It is hardly confidence building.

2.) Why no other alternatives discussed with shareholders e.g. approx.1400 shareholders providing short term finance of the $2.5M would be $1785 each, repayable 6 months– surely better than sucking on a bigger loss from dilution?

3.) With all this dilution, the options are looking to be worthless by November. The $11M they miss out on these were for next projects? So why not address this matter. Given this is the case then a Cap. Raising for these must be undertaken later once SP ascends to more relevant value. Again the Corp. Gov. Stmt requires them to “anticipate” matters to run the business.

So, guys/gals stop whining, you do have some power:
Firstly – the directors (we know their names) should be made known that the public does not invest in companies where the board and shareholders interests aren’t aligned. While they may get onto boards of existing companies, I should imagine investors will not support any where they want to get into an IPO again.

Secondly – Some concerted conservative shareholder activism might be in order -
I would be happy to sign a Proxy for my modest holding to an activist who will be attending the EGM (would love to come but I live in NZ) to make these views known.

Sorry for being grumpy too. Where have I got it wrong? I have yet to be convinced where the value will be.
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P.S. to BBY- Mr. Market seems to think 12c too much discount having finished strongly at 14c.