RE: Rabbit out of the hat?2 Sep 2024 17:42
So he thinks the market will pay a premium to the ECR share price to acquire assets, which would undoubtedly come with no guarantee of being acquired until the cash was raised and deal is done, in a US helium company.
Why would investors buy new stock at a premium if they could buy the float at spot. Unless I guess you are going to have a two tier share structure else you would run the risk of not raising the cash.
I mean it’s not like there is zero buy side liquidity here.
Sounds to me that after years and years and pages of RNS’s here that have achieved nothing other than significant shareholder dilution this BoD have woken up to what a money pit ECR is! Oh other than the Philippines mine royalty, but alas that was sold as needed cash!
Perhaps the Bod realised just how expensive it is to build a mine and that very few companies actually make it. Even PXC in US, raised $80m from bond financing as opposed to dilution. But the market realises you still gotta pay the coupons and the parallel loan! So their SP had tanked. But will imo do well later.
So you look at helium as accurately posted by tradedesk below. Low capex, lower opex, lower risk, quicker time to market high margins. GEX are also getting on the bandwagon in Oz although their capital structure is dire! But they should get there eventually.
Perhaps this is the start of a break from digging for ECR. Land the right deal and things could shift for the better and quicker. Much quicker than these wasted years!
Prove up sell, sell up switch markets. Probably not as mad as it sounds, but I’d like to know how they propose to raise cash above spot, other than giving shed loads of cheap warrants away. Oh just like before!
Usual caveats
Trek
Sign In
Follow the stocks
