GREY:SWYDF - Post by User
Post by
mjl777on Apr 09, 2014 6:00pm
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Post# 22432355
My Two Cents
My Two CentsI haven't had the time to review the documents on SEDAR yet, but it appears that the price of the share subscription receipts will be set by the price of the public offering. So, ultimately Stornoway will be diluting to the tune of 400-500 MM shares. That's truly ridiculous and beyond comprehension. Stornoway paid way too much for the streaming agreement. I recall gross revenue of $200 MM p.a. w/o the specials. That's an extremely nice cash flow stream that Orion and the Caisse are buying for peanuts. Who is behind Orion? No, let me guess. Dundee? Agnico? Why the need to go overboard with equity when the project had an above average capacity to assume long-term debt. I guess the majors (and other big boys) wanted a bigger piece of the action. Lots to go around, I guess. For everyone except the company's long suffering minority shareholders. It's a shame that we waited this long for such a disappointing announcement. It seems the build at all costs mentality trumped prudence.