RE:RE:RE:RE:RE:RE:RE:RE:RE:US$20 Million 6 7/8% Convertible Senior SubordinDebt is terrible for early stage mining companies as they have no way to service the debt other than issuing more shares or more notes, with the issuance of shares being the easiest path, but is of course dillutive.
Now that PLG is ramping up production, cash flows will steadily increase and in a few years, the Masseve debt will be gone, but there will be new debt for Waterberg. I believe the pain is behind us and with shares trading at 1/4 of book value, people holding on will be rewarded for the wait.
Again, look at Pretium for comparison. They too had to incur debt and much more than PLG. The share structure is simlar with PVG having 20% more shares outstanding. Sure, gold is trading at $1250 and PT $900, but PT and PD will be catching up within a year. The timing of Masseve ramp up may turn out to be fortuitous.
This is my opinion, but i continue to add shares along with the commercial investors.