RE:RE:RE:Question16 million is a mjor detail. The company would only issue excess shares for 2 reasons.
1). Its in trouble
2). Expects Gold price to further detriorate.
Time will tell but this seems like a VERY foolish move by bruce. The discount given is ridiculous especially since "supposedly" the company is not strapped for cash.
- grade in its recent report was higher then previous quarter meaning soon they will need to resort to lower grade
- the company still has tax owed on their financial statements
- the mexican tax effect is still yet to be seen.
Although one can suspect the company might have raised this cash to activate a crusher/expand production. Why?
By diluting shares the company is not as attractive as before, the share price has def lost its punch (trading at close to 8 times forward P/E now) and shareholders like myself are discouraged and have felt betrayed by management.
Just my 2 cents.