RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Hoping for news end of monthgreen_dog wrote
sclarda wrote: Times like this is where we seperate the men from the Pu@ssies.
It's been a while since I checked on WGC. I see that there was:
a PP for
$2,413,351 closing on October 16th, for 26,815,013 units at 9 cents, each with full warrant at 14 cents good for five years; shares closed at 18 cents that day.
a PP for
$2,223,000 closing on December 4th, for 17,784,000 units at 12.5 cents, each with a full warrant at 20 cents good for five years; shares closed at 17 cents that day.
a PP for
$1,004,775 closing on January 21st, for 8,038,200 units at 12.5 cents, each with a full warrant at 20 cents good for five years; shares closed at 12 cents that day.
a PP for
$2,593,528 closing on February 18th, for 28,816,983 units at 9 cents, each with a full warrant at 13 cents good for five years; shares closed at 17.5 cents that day.
These are the PPs announced on their website at
https://winstongoldmining.com/news/ That's an additional 81 million shares and the same number of warrants in just over four months.
It's these frequent private placements with generous warrants that made me take my cash elsewhere. The progress in mining operations and expectation that it will lead to self-sufficiency is (for me) diminished by my reduced share of the pie. I'm still interested to see where the company takes it.
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The amount of shares issued and warrants that go along with them is concerning. At the same time when Carberra was asked about that during an interview he said "How else can we get the money" That is the problem. Insiders have invested a lot of money here and are likely tapped out or not wanting to put every last penny they have into this company and who can blame them.
Banks wont lend on something like this especially with no feasibility studies, or the proper ex;,
exploration drilling and resource reserve reports done to show how much gold they have. Now that they are in the middle of the project and need more money before they start producing gold at capacity they are at the mercy of anyone who will give them money. That is why they have to sell a lot of cheap shares and give out warrants. This type of thing happens all the time with these types of small junior miner trying to get into production. Can anyone think of another way for them to raise cash?
At the same time they have done a lot of private placements and dillution it also shows that someone has invested over $8 million into these private placements over the last while. That gives me condidence that they seem to believe in the future for this company. These investors demanding all these warrants for their investments also indicates that they think that the shareprice will be a lot higher in the future for them to bother taking all these warrants.
Lets be clear about this as i dont want to be accused of being a pumper of this stock. Winston gold is a HIGH risk possibly high reward company to invest in and there are absolutely no guarantees here. ANY money you invest in this stock could be 100% gone at anytime and anybody investing in this stock should know that going in and act accordingly.
At the same time for someone such as myself who is willing to take a chance on stocks like this and having looked at and invested in many over the years many of which i lost a lot of money on which gave me some well deserved lessons i believe i have learned quite a bit of what to look for and i am liking a lot of what i am seeing here.
The positives here are a mine that was a past producer of high grade gold and had some existing infrastructure and exploration drilling along with the current experienced management with lot of cash invested and an existing mill that they have refurbished close by with investors like Pallisades recently pumping over $8 million into this company while demanding a lot of warrants.
All of these positives lead me to believe that there is a good chance that this company has a lot better chance of doing well and making money eventually than 99% of the others. That is only my opinion and i could easily be wrong as i have many times before.
Looking at the number of shares and warrants gives an idea of where we stand. Fully dilluted they will have aprox. 650 million shares out. At the current shareprice and allowing for all the warrants to be exercised there is a current market cap. of aprox. $78 million. Those warrants will bring in aprox. $30 million if exercised. If they can get up to production of aprox. 30 000 ouces of gold per at the costs they indicate they should be making aprox. $32 million CDN. per year. At 8 times cashflow that would equal a market cap. of aprox $256 million for this company which is aprox. 3 times the current market cap. with warrants exercised.
For arguments sake lets say they do get up to full production in the next couple months. In one year from that time they should produce aprox. $32 million in profit. That shoud drive the shareprice up and will result in the warrants being exercised which will bring in another $30 million. If this were to happen Winston gold could be debt free and sitting on $62 million in cash one year after they reach full production. For a small producer like this that is a lot of money which opens up all kinds of possibilities about doing a lot more exploration and expanding or building a new mill etc which would expand production by double or more than the current projections.
Will things work out this way? Time will tell. I am willing to make a bet that for the reasons mentioned it will. Maybe one day i will lose patience and sell out. For those who dont think things will work out here they are free to put take their money elsewhere as you have. Does not matter to me what they do.
Debating the pros and cons of a stock is a good thing as listening to different points of view can give you a broader perspective on a stock. The problem i have is some fools who come onto message boards like this and endlessly whine and without providing any evidence call the stock a pump and dump because the shareprice goes up and down a few times.
If they are not happy and believe it is a pump and dump sell and move on. I for one wont miss them.