RE:RE:RE:RE:RE:RE:RE:RE:Getting boredj1nxed wrote: I don't disagree at all when it comes to a potential equity issue for the remainder of the CAPEX, but we also know that excelsior under romise and over deliver most of the time I think the potential dilution from raising all or some in equity is pretty small (10-15%) for a project like this. Compare this to heron resources where existing shareholders controlled something like 20% of the company efter they issued equity to finance the mine. They were trading at a discount to NPV but the needed to raise around $240m with a market cap of around 30m (AUD?), The opposite is true for excelsior Still... I don't think you are wrong about the markets pricing in 100% equity issue for the remaining ~$30m... But what if the market is wrong...
I hope the market is wrong and the financing is mostly debt at a reasonable rate. As Photonics has pointed out in some of his pricing models even with 100% debt it's won't be the end of the world.
I'm somewhat encouraged by Steve's Twyerould's recent comment that they are very mindful of dilution. And will another 10, 20 or even 30 million shares really make all that difference? Maybe, maybe not. Maybe it's already priced in. I think if Greenstone is going to provide the capex funding they're going to go with equity or very expensive debt or a coimbination. Check out Coro Mining's financing. Very expensive debt at around 15% from Greenstone. Debt might not be the best way to go if the debt financing is expensive like Coro's.
The old "golden rule" will come into play, however. He who has the gold makes the rules.