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I cannot understand the concerns over dilution with a fundraise. At present, every drilling result improves the value of the company. When and if we run out of money, we either sell Cascabel or do a JV. The call rests with our BOD, not BHP or whoever.
As I see it, our problem is that there is no clear message from our BOD as to the strategy. Instead there remains a ridiculous but vague suggestion of going to production on our own. Such confusion is the main reason why the SP is where it is.
If one re-reads all the MS's carefully, there is considerable logic in delaying the PFS resulting from the further drilling results, and with more results to come. The delay has resulted in a knee-jerk panic accentuated by many of us expecting a buy-out bid. Personally, I am as annoyed as everyone else at the abrupt change, but, looking long term, I'm convinced all will be well. I got caught by Hurricane oil so I remain wary - but relaxed.
There was some deception followed by a rapid change of tone/reality. I remain positive about what is in the ground, but less so about the BOD. Mining it on our own is unrealistic, a new CEO needs to say his preferred outcome - jv or sell part.
Having re-read Mather's Alpala drillingreport of 17th December, seems we are shooting ourselves in the foot. It's a delay, nothing more. What annoys me is that , as Red Knight says, we were led to believe the PFS was about to be delivered. In fact I bought another load yesterday on that basis. This BOD looks like a buggers muddle.
Encouraging but not exciting drilling results. What we need is the BOD to indicate the direction of travel and they have had plenty of time to work that out. I anticipate some news either next week or the week after. Resolving the uncertainty will have a direct and possibly dramatic effect on the SP.
I seriously thought of selling because I reckon on a temporary drift but then I thought, hang on, drilling starts in five weeks and the game is on again. If anyone knows of a Co. underwritten by an asset like Hav, and a drilling portfolio like GGP, please let us all know.
Puzzled why some have sold after the news of NM' stepping down. We have a share that most think will go up by at least 50%, possibly 100%, over the next year (being a pessimist), and no downside. Where else can you find a safer investment? Sure we all have a wish list of shares but...
Let's talk Solgold again.
Now that NM has been eased out in a kindly manner (and why not), how does the future look? I do not go along with the forecast of selling out for 50P. If that was allBHP offered, would Newcrest accept that?Of course not. Even if the two majors joined together, there are too many other shareholders to buy out. However, the size of the project suggests to me that one or the other will want to be in control. It seems to me that we can expect major developments within the next four months. The what and how remains to be seen but we can expect a corresponding uplift in the SP.
And about time.