gcm's biggest problemhas anybody noticed that gcm's biggest problem just disappeared?
the biggest complaint with gcm management is not their ability to build and operate mines profitably, but on their financial manipulations that result in share dilution, as in giving away free warrants, selling cheap shares to raise funding, convertible debenture, gold notes with 16% effective interest rate.
with a B+ rating, they now have access to cheap financing. all that dilution to raise funds is no longer necessary (as long as they don't try to expand too fast). dilution has been the biggest thing holding gcm back. country risk is not as significant compared to the fear of dilutiion (continental gold in the same country did not get a big discount like gcm). the $300 mil cheap financing just made gcm's biggest problem disappear. as long as they maintain a B+ rating, future financing of projects will not need any significant dilution either. the big reason mcewen's goal for his company to be included in the s&p500 was to get access to cheap financing. access to cheap financing makes a big difference in growing a company.