Tuesday, November 19, 2013 11:15:39 AM
The question is, what will the valuation be by the time they get this thing to a mine with this kind of dilution? We all know and accept that dilution is necessary. But dilution to this extent because management failed to promote is unacceptable. What happens to the ROI for those long term shareholders holding at a 30 cents average or higher? Forget about ROI; they're just hoping to get a return of principle. I think many of us are in that boat and have been for years. Furthermore, they tried to revalue warrants for certain financiers. I haven't heard if they succeeded, but if they didn't, it's directly because a number of us contacted the TSX in opposition. Knowing the resources they have and how close they are to agreements, management still continues to telegraph financing at low share prices.
We're investors. We invested in a company to bring a mine into production and expected a return for the money that we invested. That's only reasonable. And if it's a couple more years, we may not like it, but it needs to be worth the lost opportunity costs. Right now, one has to wonder if the project will be worth 30 cents a share by the time we arrive at production. Why is it that management continues to move the project forward, but constantly unnecessarily diminishes shareholder value by announcing dilution at the same time as any progress, and by telegraphing financing at ridiculously low share valuations?...which of course causes greater dilution. As far as I'm concerned, this is worse than gross negligence.
Your thoughts?
ZenaTech, Inc. (NASDAQ: ZENA) Launchs IQ Nano Drone for Commercial Indoor Use • HALO • Oct 10, 2024 8:09 AM
CBD Life Sciences Inc. (CBDL) Targets Alibaba as the Next Retail Giant for Wholesale Expansion of Top-Selling CBD Products • CBDL • Oct 10, 2024 8:00 AM
Foremost Lithium Announces Option Agreement with Denison on 10 Uranium Projects Spanning over 330,000 Acres in the Athabasca Basin, Saskatchewan • FAT • Oct 10, 2024 5:51 AM
Element79 Gold Corp. Reports Significant Progress in Community Relations and Development Efforts in Chachas, Peru • ELEM • Oct 9, 2024 10:30 AM
Unitronix Corp Launches Share Buyback Initiative • UTRX • Oct 9, 2024 9:10 AM
BASANITE INDUSTRIES, LLC RECEIVES U.S. PATENT FOR ITS BASAFLEX™ BASALT FIBER COMPOSITE REBAR AND METHOD OF MANUFACTURING • BASA • Oct 9, 2024 7:30 AM