Additional Dart comment “I think it depends on what the bought deal is used for, at what price, and what level of dilution is present. If a company is raising money at higher prices than it did previously, diluting a reasonable amount, rarely ever dilutes shareholders, and is getting significant growth out of that dilution, I don't see it as an issue.
On the other hand, if a company is consistently raising money at lower prices, is raising this money not for growth, but due to incompetence and poorly managing its capital, and the dilution is significant, then I think they should be in the penalty box. Ex-COVID-19 headwinds in Australia, inflationary pressures, and a tight labor market, Karora does a $15 - $20 million raise at most and gets Lakewood. Unfortunately, in the situation we've found ourselves in, paving a path towards more than doubling production potentially is very difficult without the use of some outside capital.
I suppose the company could have chosen to issue a release scrapping its 3-year outlook instead, choosing to increase mill throughput to just 2.0 million tonnes per annum by 2024 due to the tight labor market/supply chain issues, and been lucky to do 170,000 ounces per annum and would still having a bottleneck issue at one mill. I think slight dilution and pushing the potential growth profile to 250,000 ounces per annum post-2025 was the better choice, and we certainly wouldn't be trading above C$4.00 if they had issued that release instead.”