TSX:LSG.DB - Post by User
Post by
tradervalueon Aug 17, 2012 9:49am
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Post# 20228503
management continues to dilute
management continues to dilute Management keeps speaking of becoming FCF positive and the adds dilution again. And they increa the size when they can get moreaway, means more dilution. stock -15% today -80% from top, but no problem as management owns few shares outright, just options and then they get new options at lower strikes in the future.
At these share price levels any issuance/dilution is very expensive, they should cut expenditure and simply only spend what is coming in through current production even if it takes a bit longer to grow. All these junior miners have no clue about shareholder value and are not focusing on FCF generation, which is the main things in this environment of super high cost of capital. Some of the big firms have fired management and LSG should do the same after this. LSG is a producer at least that should give them the room to focus on working with the CF they generate without dilution.
CEO speaks of becoming FCF positive, but then it is only for the main project and more and more financing comes along.