RE:RE:RE:Majority ShareholderFirst, It doesn't matter that RCF is or isn't destined to be a majority stockholder. That isn't the issue. The issue is the Avanti's capital structure. When you say that everything will be okay as long as the capital is used correctly and will eventually push the value up. Of course management must deploy capital efficiently. Up to now it hasn't been. That makes no sense to me and I say further that statement is just not relevant if not just wrong. I say, rather, The capital structure is not efficient, so much stock is spent on interest payments, so much stock has been spent on options, the stock price is so low, there is very little equity to be had etc etc.You've heard my rants that the founders and their team removed a lot of capital from Avanti via salaries and who knows what else.
That Avanti has value in its DNA is not new. I'm in it with a boatload because there is value. However the only access I have to that value is through the capital structure, i.e the share structure and how that structure is managed by Avanti. Everything else is execution. Further, the only things that are going to raise the value of Avanti is to get the moly out of ground and sell it for a price. The higher the price the better. The home run will happen if the price of moly goes higher than say 16.00 up to 20, 30 or 40.00 dollars. So how likely is that? you never know. Further, if significant economic reserves are added from the BEll Moly and Roundy Creek deposits. That could happen. That could add to reserves, lengthen the live of mine, and coupled with higher prices be a real catalyst for the stock. Right now everything is a drain. Everything. Until we get to production and earn the first penny of revenue.
Finally, back in the day 2009, everyone I spoke with thought Avanti could be a 1.50 stock. 5 years later, 5 years of doing whatever they did or didn't do correctly or incorrectly we are lucky if we see .20, and from my lips to God's ears .30 to .40. Yes some of that is because of the investor sentiment that doesn't favor miners, but at least half if now more is due to investor unfriendly capital structure management.