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Bookbuild already closed in UK and Europe - there was the opportunity for it to go on for another day - US open until 2.30 ET.
Implies they have had good demand which bodes well for things going forward, especially as BB is now around the closing share price.
I was surprised that they did not suspend it on the LSE as well.
I guess it will depend on the uptake by II's and the sentiment on the asx as to how things go in the near term. If the placing was what the shorts were waiting for and AS 1.10 is the bottom then they may start to close now although they may try one last push first.
Do you know anything about the Van Eck gold miners index? I heard that there was a possibility that they may be removed in a rebalance if the share price went too low, I wondered if the increase in MCap reduced this possibility (provide no big fall in the SP)? It was another possible reason stated for the shorts.
On advfn I see people complaining that we've been treated as second class shareholders because we on the LSE weren't allowed to participate in the raise. Personally, I'm not too concerned and feel we have some advantages. We got the chance to buy some shares today, which I did, while Resolute was halted on the ASX.
I think trading only resumes on Thursday, and who knows what Trump might tweet in the meantime. For what I know, I could wake up tomorrow morning and gold could be at $1700 and Resolute at 80p. I'd rather get my bargain price shares now and not wait till Thursday.
Agree re-last summer, should have raised when they purchased Maco. I guess they thought that they may have had enough cash flow to service the debt but some issue in September and then a bad December quarter put paid to that (although POG has been in their favour).
I think that it is all now about setting things up to go underground at Tabakoroni,
I have to say that I wasn't expecting that. If they wanted to raise they should've done it last summer when this was over a quid. I thought they will use the money from Ravenswood sale to over debt.
Otherwise the raise isn't too bad, close to where the share price has been recently anyway. Personally, I've topped up here at around 60. I'm thinking that perhaps they might try to buy out one or two of the smaller companies that they have a strategic stake in, JVs, etc. Valuations are still cheap but will move higher with the price of gold eventually. Obviously they would be keeping their cards close to their chest and won't announce that and would state debt repayment as the official reason for the raise. The fact is that they are cashed up now, so there are a lot of open possibilities.
The price has now dropped to around the placing price. They do have a contingency for funding if they do not raise the full amount. If they get the full amount it seems the intention is to be near debt free by year end (if POG does not shift too much)
Guidance for the year now looks to be approx 440koz. Poor result for the December oxide circuit explained and should be short term.
It will be interesting to see what they decide to do with Bibiani now that they will have less debt and are essentially now only a West African miner.
Hopefully upwards from here (but I have thought that before!)
as raises go this is one of the best i`ve seen , ( and we`ve all witnessed some awful ones ) , not much of a discount and all inclusive .
Suspended on the asx while they raise $130M . It is @ A$1.10 (approx 5-7% discount), will be used to repay Toro debt.
Only last week, they had again, said that they would expand the credit facility so not particularly happy about this.
The positive is that it is that the placing is not at a massive discount and it should resolve any worries about debt going forward.
' Resolute intends to refinance the Toro Gold debt facilities provided by Taurus by paying down the facilities with the significant cash reserves within the Toro Gold capital structure augmented by an expansion of the Company's existing low-cost senior revolving SLF.'