GREY:WFEMF - Post by User
Comment by
Bobwinson Jan 14, 2013 12:54pm
183 Views
Post# 20835323
RE: Just a Thought
RE: Just a Thought that's a terrible idea. Raising capital nowadays is really hard for juniors. So you want them to raise money and then buy back shares?
What happens if they run short of cash for the mill/mine? Go back to the market and get more? Imagine what that pricing would be.
What happens if they run into hiccups during startup and cashflow is delayed? What if a major piece of equipment doesn't work out.
All these things can and will happen during construction and startup. Puffing up the share price is the last of a junior miner's worries. They need to build a mine and get it operating correctly within the timeframe forecast. Failure dooms the stock price, regardless of how many shares you buy back. You need cash as an insurance policy.
But first, you have to have financing! Where is it???