AdviseI sold my shares last week at 0.74$ with a 9% lost.
It seems once again I was right we trade now 0.65$. As I told u before never listen to cosmicac and greendandgold. They are the one who were advising you to buy at 2.4$, 1.8$, 1.4$......
Financing probably at around 0.5$, it will make around 450 millions fully diluted shares (3 times more than 4 months ago)
Miningmonster is right. They are desespereate at raising capital. This is not a good sign.....
Based on 5 times EBITDA on SJT (around 50 million), SJT is worth 250 millions divided by 450 millions. So SJT is worth 0.55$ per share.
Considering a best case scenario with no other dilution over the next few years (highly improbable) with Orita and Geysers coming online by 2014 the EBITDA should be around 95 millions, so all 3 projects (SJT,Orita and Geysers) are worth around 1$ on the best case scenario.
on a normal scenario we will have cost overruns on Orita and Geysers (as usual) and have another massive fundraising at 0.2-0.3$. As I told u before vicious cycle.....
Sell before the end. This will be my last advise. The risk/reward is really not good.
Trying to catch a falling knife is always painful believe me....
Best
Julien