ASF, it would never ceases to amaze when what reasons companies...

ASF, it would never ceases to amaze when what reasons companies come up with for capital raisings but here it is unlikely. The last raising was for a contingency as they ramped up and they hardly needed it ending up the quarter with $8m in liquidity. They do have debt amortisation of $16m this year from memory. But they are generating cash based on their guidance so far of around $6m a month. (After royalties and corp overheads and before maintenance capex).

The reality is that this just crazy cheap for who knows what technical reason. On an enterprise value basis its trading around 3x net cash flow. It has a 7-8 year mine life that's likely to be expanded in the short term as under-exploration in the development stage has likely left easy targets. And they are studying increasing production from around 80,000 oz to up to 98,000 oz this year with existing plant.