RE: More nice chunky buys this morning08 Jun 2022 17:18
Hi Trek, yes agree I've also known circumstances whereby they actually sold at a loss knowing they'll recoup more on the conversion. Perhaps that's what's happened here? The risk is in the expiry time parameter of the warrants and the company achieving their goals.
PXC does look like an innovative way of raising funds without dilution. There's several non-dilutive avenues the can take and they also have a clear advantage being a producer which widens the possibilities.
RE: More nice chunky buys this morning08 Jun 2022 12:30
By Xmas this will be a different company to the one that started the year. The quarterly results, financials and everything else will all be a lot clearer until then I doubt they'd be clear in comparison as the variables are always changing.
2023 will be another growth year and expect more acquisitions from a strong balance sheet going forward.
RE: More nice chunky buys this morning08 Jun 2022 09:13
Hi Trek, The warrants just give the holder the right to convert to shares at a set price, in this case 2.5p.
If the SP stayed below the strike price then you wouldn't convert instead just buy more shares on the open market at a cheaper price and let the warrants expire.
My main point is that the converted warrants would raise funds for the company, £7.5m. They need these funds to pay for the capital expenditure CAPEX. They are producing revenue through gold sales but it isn't going to cover the cost of the expansion and continue to drill at some point in the future they'll need extra funds They did have a £5m CLN which they changed to a £2m strategic placement. Maybe the £2m is enough but as long as the warrants are there before they expire, the risk of huge dilution isn't there for this year.
Serious question, if you were having your car engine rebuilt and upgraded would you be concerned about the MPG along the way? It looks to me like they're doing a thorough job and will be completed before Xmas.