RE: Someone explain to me where this company canOf course in the short term finding the money is the most important issue to calm down the creditors and the bankers... But if you look ahead at mining operations, it needs to be supported with a good production cost control program in order to become and stay for the long term a low cost producers for both gold and uranium. If they succeed doing that, than regardless the bottom and the high of both markets they will generate cash. Spending it wisely after will give us the direction the company can take. I feel that they have everything to get there. Let's see how the underwriters will ask for selling these new shares... Because it is probably the most efficient way since the permit problem.
I wrote to Bob today and he said that some people felt that seeing the SP going up too quickly was not in line with the company financial position and he referred me to the last financial statement issued at the last quarter. Altough we are all aware of the problem we have no indication of which road the company will take to rise money. We hope that they will get it at the right level of interest rate or at a minimum dilution for shareholders.
Can the market quickly absorb 75M of new share at 2,50$ (for example)? Probably yes, with all the free cash on the sideline actually.
Entering in the second quarter of 2010 and slowly seeing energy cost rising over the next couples of year according to all analysts, uranium will become an alternative to produce electricity at decent cost.
With uranium going up, FIU cash generation will increase quickly. If gold stay relatively stable above 1000$/on., there is enough money to easily attract money from the stock market.
One example is: a few year back the market absorbed a trust fund dedicated 100% on uranium at 10$/unit today they are in the 3$ range...This is investment - you take a decision and you need to live with it after...There is always a buyer...
FIU has most of its future potential attached to uranium price and right now there is no traction at all on uranium pricing. Let's hope for better quarters ahead in 2010 and 2011!
do your own dd!