RE:RE:RE:RE:Victor Fedeli with FL in Japan with Mitsubishi I'm going to do a massive bit of reading between the lines. Based on the pic of them sit round the table, Mitsubishi guy and minister are centre, facing each other and lil' old Trev is sat on the end. This was a discussion principally about what ON could give to Mitsubishi and vis-a-versa. Trev is just counting $$$ in his head lol.
Margin321 wrote:
This is big. The best part of the deal is that the next and bigger piece of the project is purchased by Mitsubishi based on the valuation of the resource in the feasibility study, and not on the share price. That bypasses some of the serious structural problems in the market that are affecting share prices (keeping them down) of small mining and energy companies.
There should be a significant move from this kind of significant development. Not a few pennies. That would benefit share holders and also give FL more flexibility in the capital markets, if and when they need more capital to advance their business. As it is, any progress by the company brings only short term move, the brokers sell their ample supply at a profit, the shares fall back and eventually there is a secondary at a lower price (rather than a higher one) and the brokers load up on even cheaper shares. Wash and repeat. Shareholders get progressively diluted and the company hardly benefits from selling new shares because the price has been artificially suppressed.
The capital markets only work to efficiently raise capital if real progress is rewarded by increase in share price, subsequent offering are at higher price each time with lfewer shares issued. Significant capital is then available to the company. Shareholders do well. But it doesn't work for brokers who would rather be issuing shares in increasing numbers at ever lower prices, gaining the comapny little and punitively diluting the shareholders, but reaping maximum profits. This is happening to a lot of small mineral and energy companies, and FL is a good example. Shares should be much higher in response to a really important partnership structured in such a favorable way.