RBC Capital Markets Just saw a RBC report where the analyst expects that Cline will need to raise anywhere from $50-$75 million in the next 12 months to ramp up production. The question I ask is how is Cline going to raise anywhere near that amount when the current market cap of the company is $60 million? Can you say major dilution.The analyst also said insolvency is increasingly probable if the company can't sell any coal in the second half of 2012. I think the analyst was being generous with a $.35 target price only because RBC may have an opportunity to participate in an equity issue.
With the threat of dilution I don't see how this share price will have any major upside. Maybe Guns can explain it to me?