Hey Guys,
i havent been posting much because reading the comments of once excited posters are now depressing me.
A few important points could be made.
1. We raised capital because we needed it.
It couldnt be more clear in this slide. Most of it is to be spent on Morila ramp up and development activities. Dewatering in the wet season would require upscaling in a major way. Refurbishment of the power station would not be cheap.
2. There is never a good time to raise capital and dilute shareholders.
If they raised it at 70c then its very likely that it would create a long term top in the share price and struggle to get back to those highs and make a solid resistance level as disappointed placement takers sell when they get near their original entry price. Especially since all good news has been absorbed. So we do it at 40c in a pull back from a solid uptrend with potential good news to avoid the above mentioned issue. Unfortunately holders complain its too cheap. The amount of holders that complain that there is nothing in it for them, but the price falls below the SPP price if there was one offered and i wonder how many buy that cheaper price?
3. If gold drops in price, we shout at management, we should have raised when gold was higher. If the lithium project is delayed and we miss out of the high lithium prices we say we should have raised capital and avoided this. If gold goes up and we delayed the capital raise we say gee we could have been producing 200k ozpa now if we raised capital before. Damned if you do and damned if you dont.
4. Businesses need money to grow. If you leave no profit for those new investors then you are lying to them when you ask them to invest. So leave some on the table for them and by virtue us. If the share price was going to reach 70c it will still reach it with a strong balance sheet and money to do what needs to be done.
My recommendation is that if you no longer trust management then sell first thing monday morning. A key to good investing is faith in management.
