Consolidation of shares on the horizonOmai is falling to the pressures of institutions to try and reduce the share structure. A couple of months ago our CEO indicated that the larger shareholders felt there was no need to consolidate the number of shares. With the indicated consolidation share ratio potentially happening soon, shareholder value will probable be reduced over time, which I witnessed during the last consolidation. Existing shareholders never seem to win, but we all know it is all part of the game. I would be ok with a lower share consolidation as we need to go to market for financing to increase our mineral resource and we cannot give additional shares away for pennies which has happened over the past few financings which has put us in this high share structure.
Elaine is making the right decisions by focusing on the potential open pit resources which should have been our direction from the start. We know our resources increase in grade at depth, but it is expensive to drill. Focus on the shallow resources and get a good open pit resource. Unless we are planning on mining this property ourselves (probably not), lets increase sharevalue for existing shareholders who have supported this stock for years and make insitutions or interested companies pay for our shares.
In the long run, if this property gets bought out, it will still be bought out for the same price based on the mineral resource. The current shareholders will just have less shares. Saying all of this, I am still buying, but a bit more cautiously. Lets get creative Omai, you have the right financing people in the company, let them earn their shares and come up with a better plan rather than the easy way out to just consolidate at a 1:9 ratio.