Niko Resources Ltd NKRSF

RE: OVERSOLD - NOT

[CalifDreaming]

That $600MM could easily be a massive waste of money if the drilling gods continue to be unkind.

 

The problem is NKO will run out of cash to fund capex at end of next year.  Then what do they do?  Raise more equity?  Sell assets?  Whatever happens, it's all bad news for shareholders (especially those who think the shares should sell for $25-$30).

 

Don't forget that $300MM of converts mature at year end - that's a Sword of Damacles hanging over the company.  Only thing that will save NKO shareholders is if they have good drilling success - but odds are stacked against you.