OTCPK:IVWFF - Post by User
Post by
SergeGodinon Aug 23, 2011 6:23am
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Post# 18969696
Dilution
DilutionThe main concern for investors shouldn't be resumption of operations, it should be dilution:
According to the CFO:
However, even with the foregoing assumptions, the Company cannot make any assurances that it will have sufficient working capital on hand to cover any material additional or unforeseen costs incurred in restarting the Magellan Mine, if and when a restart decision is made. As a result, the Company may still require additional financing during this twelve month period.
Ouch!
This could add 150 million shares at 15 cents and see the float increased to 830 million.
IVW in full production should be capitalized at about 400 to 500 million, translating into a share price of about 50 cents.
Unless lead price goes through the roof, hard to see how this could ever become a one dollar stock.
I guess for those willing to sink some money into IVW at 15 cents, this translates to a pretty good return, 400% or so, over the next year or two.
For those that bought at 50 cents or higher, well, hang on and you may get your money back in a best case scenario.
- Serge.