RE:RE:Back at 0,50 , Production of gold at a positive ebitda is the key to Lio right now - plain & simple.
Given the resistance as it got closer to the warrant price it is now easy to see that a lot of the traders don't see them making it to any significant level of cash generation with this last financing and even the availability of Tranche three's $4 million.
This is why every one of these Placement's keep getting executed at a lower price. The traders up to now have been right every time- mgmt have consistently underestimated the costs to meet goals. The company has to come back to the market and it's always going to be a lower price because they have boxed themselves into a "must have" $ corner.
This time It's like they seriously underestimated the amount of cash that got eaten up to build out the working capital required to carry full production. The CFO is either not the best with cash flow projections or mgmt are not listening to their CFO.
The good news - the announcement that the capital drain to move to 500tpd was able to be put on hold as they are producing at close to 50% above the 300tpd - this execution at the production level may save our bacon.
reddog11 wrote: Hard to understand normally. Its the PP.
At some point IF gold production ends up actually happening then the share price will have to rise even with all the overhanging PP shares. Hopefully back to where we were BEFORE the PP at least.
The markt cap is far below the investment in mine construction and drilling so there is an obvious value.
Frustrting, yes.
jmo
RD