Post by
ekim on Mar 08, 2017 12:14pm
Massive share issue?
Love to see PGD go fund this whole Chidliak thing to a mine.
Doubt it...but this is a way that it could happen.
Issue another 40 to 50 million shares or whatever to get this $7.5 million.
The updated PEA shows an after tax NPV of CAD $1 billion.
Market cap of PGD goes up to CAD$400 million (not unreasonable IMO).
Do a massive share issue at that point for 400 million shares at $1 per share.
Fund the mine contruction. Get another CAD$100 million LOC to get a half billion available.
End up with 800 million shares....of which the PBV is the current $400 million + $1 billion NPV = CAD$1.4 billion in present value with a discount rate of 7.5%. Tone that down to 5% and you are probably at CAD$1.5 to CAD1.6 billion.
Assume a present value of CAD$1.6 billion equates to a full book value of $2 per share.
Anyone like $2 per share with 800 million shares?
Looking at share price, value and outstanding shares all seperately is like looking at grade, tonnage, value per carat all seperately. You need them all to come up with an opinion.
The above is not going to happen..but I just wanted to show everyone here that Paper is not necessarily evil if Book Value follows through.
LONG...PGD
EKIM
Comment by
Kidlapik on Mar 08, 2017 12:32pm
Give me a discounted rights offerring but I want a 2 year warrant.
Comment by
ekim on Mar 08, 2017 12:36pm
A warrant carrying a value would be nice. A 4:1 rights issue with no warrants is the fastest way to raise money. Anything tigher then 4:1 and/or attached a warrant would create a paperwork and time. That is why we saw the 10 cent offering got through much quicker then the 21 cent plus warrant offering. LONG...PGD EKIM
Comment by
mill44 on Mar 08, 2017 12:39pm
That's 50M rights at 15c. Who knows how many shares would come up for sale because of that. If I wanted to maintain control, I would try to avoid that at all cost.
Comment by
Kidlapik on Mar 08, 2017 12:54pm
They own 47% of the company, there is no way IMO that anyone can gather 51% of this company on the open market. Especially not without running this company WAAAAAAAAAAAAAAAAAAAAAAY up.