GREY:VITFF - Post by User
Comment by
CommiePinkoon Feb 02, 2015 6:28pm
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Post# 23390187
RE:Victoria Gold 2015
RE:Victoria Gold 2015
Been faithfully hanging on for a few years now. I find one aspect of this interview rather disturbing. Which is his assertion that any new financing could potentially include an equity component for as much as $150 million. Considering the outstanding shares for VIT I'm surprised they would even consider issuing one red cent in new equity. I always take a comment from any CEO that they won't issue and new capital at bargain basement prices with a grain of salt. I find with most CEO's if you dangle a large chunk of money at any price they'll usually take the bait. Even if they did an equity financing at $1 that would still be 150 million shares which is a lot of dilution. And of course as we all know we are still a long ways from $1. I find these type of interviews to be typically nothing more than fluff, usually scripted passive and friendly questions. If I was doing the interview the question I would be asking is - If you are considering doing any type of equity financing would you consider doing a share rollback? Because thats the only way in my opinion they could ever issude any new equity. But on the flip side the capex for this project or any shovel ready project in this country has probably gotten cheaper over the course of the last year. The price of steel is down, the cost of fuel is down and in Canadian dollars the price gold is trading at $1600. Which I think makes the economics of this project a lot better than it was a year ago. But the only solution for this company in my opinion is an outright buyout!