Financing Fiasco du jour
Sabanye-Stillwater yesterday shot itself by announcing a convertible debenture financing. Cv. into SBSW stock. Stock cratered from US$5.20 to $4.25. Recovering some today.
This isn't some obscure fluff - Sibanye has a market cap in excess of US$3 billion and was looking to raise $500 million.
I simply point this out to demonstrate how many pounds of flesh these companies have to leave on the floor if they want/need to raise money. I maintain that Skeena should try something different, namely, a US$1000 debenture convertible into half an ounce of gold. Avoid dilution. Earn accolades for innovation. Etc. The alternate path is bot-deal-bloody and everybody knows it.