GREY:GMFLF - Post by User
Comment by
nostrilon Mar 12, 2015 8:30am
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Post# 23512739
RE:Antimony
RE:Antimonyhazardpay
Much as I would like to agree with you (as I am a long suffering shareholder), I think the chances of raising debt right now are zero. Also, for the moment at least, your points about Antimony are not relevant. The preliminary PEA does not plan to produce antimony. Furthermore, it makes clear that at current silver price levels the company is not going to be profitabable.
The key value of the company at the moment is its option value. If silver prices rise, the returns could be huge. To maximise the option value the company needs to raise cash to keep the mine dewatered and cover admin costs.
No one is going to give the company money unless they get a significant amount of the potential upside. So the CEO should be going to investors saying: if you give me $1m, I will give you half the company -this is the cheapest option you are ever going to get on the long term price of silver.
Aiming to get debt will ultimately result in shareholders getting zero in bankruptcy.
N.