Hi Vano...really, the share consolidation doesnt have any impact on your overall netwealth...because basically, if you had 100 Shares worth 1 cent each, they were worth $1,...and after the consolidation, you will have 1 Shares at $1 each, so you will still be worth worth $1....I think the share consolidation is good, becuase if you are an investor or trader and you look at a company with a share price of 0.6 cents, and then see it also has 6 Billion shares on isssue, you are not going to touch it.
But, if you see a share with a price of 50c to $1 , and only 60 million shares on issue, you are much more likely to have a look at it. This then icreases the awareness of the share overall.
I also believe that Ed, like he did with SBM, will be able to increase the size of the resource at Wiluna, and hence then also increase the overall value of the company. When Ed stepped into the role at SBM, he, over about a period of 18-24 months, moved the shares price from abotu 5cents to about 95 cents (this is without a share consolidation) so basically 20 times...this is what you would be hoping for as a long temr investor in AXM, in my opinion.
AXM Price at posting:
0.3¢ Sentiment: None Disclosure: Held
