Please explainI've always been a little skeptical about Osisko. They've drilled something like 1600 kilometres of core at this Windfall deposit and you would think that would be enough to have proven ounces up to their eyebrows. No. Lots of indicated ounces though. I don't dispute there's lotsa gold here, but why would you name your Windfall deposit after the greatest scandal in Canadian exploration history?
In the 9 months to Sept. 30 the company repurchased 5.85 million shares at an average $3.97. Given that the company needs US$607 million to develop this property, why are you buying back stock?
As of Sept 30, the company had $99 million cash. Let's assume they burned $5 or $6 mm in Q4. Still leaves well over $90 million. These people haven't even started the permitting process yet. In some of their corporate propaganda I see reference to construction starting in 2024. Maybe that refers to 'early works', I don't know. But anyway, why raise $75 million today?
If you assume the equity component of capex at one-third, that's about Cdn$271 million needed at an exchange rate of $1.34 Cdn per US$. If Osisko burns $20 million in 2023, that means in 11 months the co. should have approx. Cdn$165 million.
This whole business of capital-raising at junior developers is a dog's breakfast, IMHO. I've seen too many terrible deals in just the last 2 years or so. This looks like another mugshot for the Book of Usual Suspects.