RE: RE: Financing - warrants Oh Bottles, once again, nice try.....
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>>>>WHAT A BUNCH OF BS!
You go to the bank to get a mortgage to buy a house. "ONE JOB?" says the Bank. What if you loose that job? We want you to have multiple jobs before we loan you money to buy a house. Oh, and by the way, we want an Independent Appraisal of that house just in case you default and we end up owning the same.<<<
REALLY? Man you are grasping for straws! Your analogy is severely flawed for a number of reasons:
When one uses an analogy they have to make sure it is applicable! There is a BIG difference between a Commercial Loan and a residential Real Estate loans! If you are not aware of the difference then one is at a BIG disadvantage when investing! This is like saying that apples are the same as oranges.
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When banks "loan" money to you for your house, more often that not they just package the loan up and sell it to another entity - the risk is passed on to someone else. In commercial loans, the bank holds the note and the risk stays with the lender. Why do you think they demand hedges on production? When was the last time you got a mortgage that you had sign up for a hedge on your income from your job or give the bank shares or warrants too? Ignorant thinking - learn some "bidness" will ya?
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Oh, and BTW if you are getting a real estate loan and your job doesn't pay enough then yes, you might have to show the income from a second job in order to qualify - or perhaps your SO or cosigner will have to be on the mortgage to qualify. So don't take the short sighted view that "a job" is enough to qualify for a loan - sorry the days of "anybody" getting a loan are over, now one has to demonstrate the ability to repay.
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So, apparently you aren't too familiar with commercial lending and don't listen to too many CCs of gold companies. If you had either you would know that banks ARE reluctant to give loans to single mine operators. Why do you think that their cost of capital is going to be so high? 15% Isn't THAT a sign of high risk?
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Oh and there are others that think that was a good post?
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I think I may have to redouble my efforts and posts here - too much ignorance and opinion masquerading as "facts" in people's minds. Too little mental curiosity to really search out the details - appears as though most just wanna be fed a "good story" from the company presentation and drink that Kool Aid unquestioningly. Sad. Good investing is more than just using a BB for your DD or finding opinions one agrees with. Good luck with that!