What is really best for us smaller shareholders? I am relatively new to this MMY board but I am a shareholder for quite a while.
I agree that dilution at such a low level (PE < 2) is not in the interest of the existing shareholders and I would prefer to see non-dilutive financings like a debt arrangement, forward sale, stream etc.
BUT, when I see how these Goldmet/Tulum guys act then I have to choose the lesser evil. They cause so much trouble and are also probably the source of the constant downward pressure of the share price. They complain to the supervisor about the financing conditions even though they themselves wanted to get in for much better conditions (and thus worse conditions for existing shareholders). Then they announced last week something which was apparently untrue and not coordinated with the company to cause troubles. My only conclusion is that these guys are not trustworthy and certainly not working in my interest.
Consequently, I support any action that dilutes them down to a bearable minority even though this causes some pain to myself! That for me is the lesser evil and I am convinced that any savvy investors comes to the same conclusions.
Also, it is so easy to avoid any dilution for yourself by just taking advantage of this depressed share price and adding to your positions. Then you probably average down and certainly avoid ending up with a smaller piece of the cake. Once the dust settles and the share price reflects a fair value, then you should be even happier.
Anyhow, these are my thoughts and conclusions. I am aligned as I said and for me it does not make sense to talk down my own position and support groups that have proved to work only in their own interest...