@JungleJim1 ..."
it's just irresposible to do a CR and leave it in the bank."
I disagree with this because we know there are a lot of expenses in re-establishing the pit, plus more with the demerger corporate costs etc over the next year before getting to full production from Morila.
We don't know what either markets or the gold price is going to do over the next year, so raising the capital when you can is the conservative play. It's reducing risk at the cost of dilution now compared to gambling that in 4-6 months time everything is still rosy with markets and Gold price.
It is a much more conservative approach that mirrors the change from exploration to a producing miner. More institutional investment means a more conservative approach. Unlike the past when a great drilling campaign of either gold or lithium would have the share price jump up 50% plus, and fall large amounts with failure, Firefinch is now out of the raw explorer phase.
It seems to me a lot of posters are stuck in past paradigms of huge gains (and losses) trading on short term good news (or bad), while the company itself has moved on to being a producer. The marketing style of BOD and management needed to and has changed to a more 'investment type' instead of 'speculative type' approach.
I don't see the need for the marketing that some are asking for, unless they are really only interested in trading for the short term. Moving forward the company will make profits and the SP will align with the reality of profits. Profit gives management huge options in the future, utilizing dividends, buy-backs, acquisitions etc to reward shareholders. The SP will not stay low when huge cash is being pumped out, which because of the cash raised is now highly likely in the next year or 2, without the worry of what markets are doing.
We no longer have to hope the Gold price held up while trying to juggle low cashflow with the increasing expenses of cleaning out the pit, nor scimp on what gets drilled, nor wonder where the cash for the next cost of demerger comes from. I'm fairly certain the BOD will do the appropriate marketing near the IPO demerger, because it's in their interests just like ours.
So far the BOD/management have managed to increase the SP by 200% in the last year, doing things their way. I don't think there is any reason to question their judgement. If we get a repeat in the next year I'll be more than ecstatic and the company has been set up to allow this to happen, even with the conservative approach of raising funds early, when they could!!
