GREY:COLUF - Post by User
Comment by
bob4977on May 29, 2013 7:49pm
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Post# 21457898
RE: RE: National posts take on the financing
RE: RE: National posts take on the financing Foxtek, the problem with your theory of this being a buying opportunity is this stock is now diluted by 15%. That means if we were expecting $1 per share earnings before, now all we can expect is 85c. Therefore our share price did drop 15% for a reason.
The last financing was supposed to take us to production with a cushion but did not. What we got instead was the dilution. Hopefully, this last bit of money will see us through to production and the ramp up. Do not forget that production starts at 250 TPD and they will be preparing extra stopes at that point so we may be experiencing negative cash flow for the first 2 or 3 quarters while we ramp up and wait for payment for our gold.
Bob