Warning
A lot has happened with Fortune Minerals since I last wrote on this forum. The most positive thing must be the contribution from the governments. This probably means that the chance increases that there is life made for this project. Anything else would be a direct waste of tax money. The collaboration with Rio Tinto also promises well. At the same time, the refinery site is virtually financed. In this mix of good news, it is probably exactly where there is something jarring in my opinion.
Is this loan agreement with Lind really that good? And then I first and foremost think of what will happen to existing shareholders, and especially those with a long-term commitment. In my opinion, Mr. Goad is throwing existing shareholders under the bus with this deal which, while providing the company with much needed funds, also provides a bunch of new shares. The dilution is going to be massive. And that in turn will certainly affect the share price in a negative way. As I see it, Lind is not a long-term investor, but a lender. And they certainly want their money back in a safe and efficient way.
I believe that the trend of the share price will point downwards in the coming months if the loan agreement with Lind is completed. There will of course be some peaks, but it will be temporary.If I'm right, I think we can still buy Fortune Minerals shares below five cents in the future.
All my opinion