Mate I’m in this now until the end. If it ends up being a big sink hole in my portfolio, so be it, you live and learn. As far as ranting goes the longer John hangs around with his ex post facto wisdom the more I’ll get fired up. Sprott are no friends of mine, just more North American spin merchants as far as I’m concerned.
And for the person putting up DCN as an example of going to the equity markets for top ups (I think it was @speculator101 who mentioned them), that’s a bad example because DCN started as a 50 cent IPO and each successive capital raising has been at higher and higher prices
1) 40M share at 50cents to raise $20 million in IPO in 2012,
2)Fully underwritten $25 million equity raising comprising an Institutional Placement to raise approximately $10 million and an Accelerated Non-Renounceable Entitlement Offer to raise approximately $15 million, November 2015. 36M share at 0.69 cents.
3) $150 million in debt funding in Dec 2016
3) Fully underwritten A$110 million equity raising comprising an Institutional Placement to raise approximately A$15.4 million and a 1 for 3.1 Accelerated Non-Renounceable Entitlement Offer to raise approximately A$94.4 million. Approximately 55 million new shares to be issued at A$2.00 per share, representing a 8.9% discount to TERP1 and a 11.9% discount to the last close of A$2.27 as at 21 February 2017
4) 14.8M shares at $2.70 to raise $40 million and SPP at same price to raise $5 million at $2.70 in July 2018
So Dacian has been able to raise $150 million in debt and $200 million in equity funding to bring the Mt Morgan project from an IPO to a mine in the space of 4 years all the while protecting shareholder value with ever increasing prices of equity raises, 50 cents in 2012, 69 cents in 2015, $2.27 in 2017 and $2.70 in 2018.
That’s the way you protect shareholder value by raising at higher and higher price. You let the market come to you because you’ve got something it wants, you don’t go wandering down the local bordello strip lifting your skirt for a cheap trick on every corner. And notice the two rights issues to existing shareholders tucked away in DCN raising history. When I spoke to Richard about a rights issue he said it would take to long or something like that. In retrospect the longer the better in my view and DCN managed two rights issues without any stress. I think I was just being fed rubbish sandwich, he probably had the Sprott Euroz embossed wedding invitation in his pocket all the time.
And let me add Dacian did all this through the absolute low of the gold cycle, these jokers have had it easy by comparison and have been walked all over. Esh
(20min delay)
