Financing/Dilution
I am waiting for the financing as I assume that there will be a brutal dilution for the shareholders. Over C$700M needs to be financed and I fear that half of that will be financed with equity, which would be about 70M new shares. At C$5 share price, that would be a dilution of over 77%, which will be reflected in the NPV per share accordingly.
Currently SKE has about 90M shares outstanding, but if you look at the past with the reverse splits, it would be over 18B shares outstanding today. WTF!
Here is the history of the reverse splits:
June 2012: 1/5
October 2017: 1/10
June 2021: 1/4
The FS figures look good at first glance, but in the end, financing the construction can also destroy the shareholder value of a good project. Says an aggrieved MOZ shareholder.