Member Info for KnockinOnHeavens

LMAO

:)

Well, Jack1988

If that's the case then I take it back and smile in return :)

KOH

Oh well Chesh,

The whole world has been built on dreams.. :)

Regards
KOH

"For £6 profit it’s probably not worth trading"

He said "£6-figure" not "£6".
Reading with understanding can make a huge difference in life :)

KOH

HL is quite good if you don't trade frequently and just hold.

They charge you a certain amount per month but no more than £45 / year so it makes sense for a larger long-term holdings / ISAs etc. They will charge £3.75 per month at most.

Well worth it.

True,

Apologies Milo :)

Regards
KOH

Good morning Scotman,

Butt still hurts after yesterday, Genius? lol

Have a good day :)

KOH

Yup DrQ,

That's the risk. However, let's not forget about the power of the projected "revenue" section of future Sirius' P/L. We all work based on those projections. It would be a real pity if they introduced billions of additional shares diluting milions of holdings forever for the sake of raising a few hundred millions today....

But sure, I agree. Cautious approach to finance will always favour "free" money over any form of debt.

Regards
KOH

Ok SL,

Me too (ideally) but I'd rather not pay for it. For the record, considering future earning's projections It is more than possible possible for Sirius to achieve financial robustness long-term without introduction of any new equity.

Everything IMHO. Let's leave it at that.

KOH
KOH

"I dunno, but I'm prepared to use an element of future dividend dilution as a sacrificial lamb (vicarious redemption to use your parlance) to leverage an IPA underwrite (if required), to facilitate an acceptable and timely round of ST2 funding"

Sure, SL. If it's necessary, it's necessary. It will come at a price though. I personally would prefer more debt instead of permanently diluted holding, even if it would mean postponing potential dividends / share buybacks by a few years.At the end of the day this holding is supposed to provide for us / our families for tens of years. I can wait a little bit longer. Taking into consideration a projected future huge earning power of Sirius, an interest on a few hundred mil wouldn't cause a huge damage to the future P/L, moreover it could potentially be paid off ahead of schedule once the mine is fully operational and produce at full capacity.

We could debate forever, but we'll get what we get anyway.

Night Night (for the LAST time)
KOH

Not to mention your earlier post (that's how the whole discussion started) stating that:

"it matters not in the long term"

which is not only ignorant but also completely incorrect :)

Night Night (this time for good)
KOH

Yes Marvel Scotty :)

To make it simple for you: it comes down to two definitions: what is truly "good" for the shareholders and what is "necessary" in order to complete the project.

One could argue that the new equity is "good" because it allows construction to be completed. Sure, I never disputed that part. It could undoubtedly be "necessary" too.

However in general terms it is also very harmful to future shareholders value and will have a destructive long-lasting effect on your future returns therefore is "no good" for shareholders (especially in comparison to "no dilution" scenario) and from the shareholders point of view shouldn't be considered unless absolutely "necessary".....

So effectively the point I am making is different than the one you are trying to refute.....

I can't explain it any clearer - I give up :)

Night Night
KOH

Yup, definitely.

At the end of the day the better the deal they can achieve the better for us all. It's worth remembering though there is only so much BOD can do. Hopefully it will be enough for successful project delivery and without too much harm to shareholders value.

KOH

theworldisenough

Sure, I agree. The whole discussion is a a bit "beforehand" and obviously we have no idea what we'll get. It could go either way. I'm hoping for some positive news this week / quarter too.

Early decisions with regards to debt / equity mix can produce some very long-lasting effect though.

Hopefully we can get a decent deal in the coming weeks / months.

KOH

Nice to meet you too, Davielad :)

KOH

Alan,

You are clearly confused too. I never said Sirius is a bad investment, we are just debating debt vs equity here :)

Relax, we will need your incurable optimism in the coming weeks :)

KOH

"Knocking.... I really think you should sell up bud and find yourself a safe little investment somewhere else, a post office savings account maybe ??"

Sure, no problem Genius. I'll make sure to utilize my interest received wisely and get you the latest edition of "Financial Statements for Dummies" next Christmas :)

KOH

tasteforlife.....

"borrowing such vasts amount of money doesnt come cheap"

You are clearly confused mate. I recommend reading my earlier post and perhaps understand the difference between Profit and Loss Account and Balance Sheet to start with before we engage in any discussion.

Debt doesn't come cheap, sure but it will go as an expense to in the future P/L and so will the royalty agreement.
New Equity issue on the other hand will slap you in the face and steal the value from your future holding forever.

If you can't see the cons of the latter, I can't help you I'm afraid.

SL,

Sure, you can list even a 100 but that's not the point. The point is that at the end of the day YOU will be the one getting hit and paying for all of those. As stated before, of course it will have a series of positive effects - it is basically a FREE money and not an expense to the future P/L, what did you expect?

It will never be "largely mitigated" - it will have irreversible negative and destructive effect to future SP and future Dividends / share. Future earnings year by year for the next 100 years will have to be divided by the larger amount of shares in circulation. How can that be good? Sure If that's the ONLY choice that we have than let it be so. But let's not confuse the necessary evil with something that is "good" for stakeholders, let alone preserving the shareholders value.....

Also,

1) Fewer Debt
2) Less Liabilities

Don't you think these two are the same?:)

Just saying.

Regards
KOH

Scotman,

That's what I was afraid of - it far exceeded your intellectual abilities :)

Oh well, ones like are needed to (for the balance) LOL

KOH