Random thoughts I've held this stock since it came into being, and added along the way. Management did very nicely for me with Marathon PGM, and so far I'm not disappointed with Marathon Gold.
The last two financings are the largest in the company's history, and were done at the highest prices in the company's history. I like it when management fills the coffers at higher and higher valuations.
I've watched smart management teams in other companies do big financings at a peak price, loading the bank account just before the price retreated. A smart move, minimizing dilution, but I don't think that's what happened here. The price of the placement seems a bit lower than I would have expected, and probably could have been higher if they had included warrants. The fact that they didn't hints to me that management doesn't want to sell future shares at current prices.
The other thing that needs an explanation is why do a large financing when they still had more cash in the bank than ever before? Obviously they have decided to radically increase the size of the exploration program. The slow-but-sure approach to proving up the resource appears to have changed in the last few months. Maybe someone is sniffing around, and Mr. Walford feels some urgency in getting the best negotiating position possible?
This company's discovery costs have averaged under $10 per ounce. If that continues (and it should continue or improve, as they get better and better understanding of the geology) that $16 million should give us another 1.6 million ounces. That would improve his negotiating position some.