RE:RE:RE:RE:Due Dilligence Analysis: Is ANX Undervalued? (part 2)longagau2 wrote:
I'm not keen on giving away more cheap warrants or shares. Anx can play a long game as it is substantially self funding. There are no big expenses coming up. I'd rather wait a year and have them gearing up for production on goldboro with more drill results and the share price already be much higher before they start diluting our shares with discount warrants and flow through shares to institutions that will just hold down the share price as the last several batches of warrants have and the next batch continues to do. If this was just an exploration or development company, getting institutions on now would be important but as ANX is already producing, it would just be giving away chunks of the company at a big discount. The share price is so low compared to anx value now that institutions can buy on the market and retail investors will sell to them.
Great post, I'm in total agreement with you. In my opinion, Rob and Kevin have nice cards in their hands and have the luxury of waiting for the big one. I'm thinking more about a package deal with a royalty company like Osisko Gold Royalties and a financing company like Orion Mine Finance to bring the project to the next level. But these companies need a PFS in place before doing a big move.
Meanwhile, bringing Eric Sprott or Pierre Lassonde on board will help in giving some fire to the SP. These guys are usually interrested in having warrants. I think it might worth it to let go a bit of the equity to get a promotion boost. When these guys jump in the train, they are there for long term usually.