Ann: Capital Raising Presentation December 2018, page-37

This winging by young Eshmun is so funny.

Esh keeps giving glowing views on projects/companies that he has fallen in love with and placed bets on. When he encounters other with counter views he rips them apart in order to feel his world view is valid. Even worse he ensures that he can not read some posters views, such as me, because he can not stand to read a balanced approach that looks at both the upside and downside.

I am probably closer to Spec's views on this announcement - WAF was never going to get all the funds without some CR, which I have been warning about for some time. I was expecting at least another 300m shares to be issued, but it looks like it will only be around 200m, bringing total SOI to 900m. Given the state of the gold/goldie market and where WAF has been trading a CR level of 25 cents is not really surprising, especially when considering they last raised at 32 cents. If the CR was taking place at say 30 cents for the same amount to be raised there would only be around 160m new shares minted, instead of the proposed 192m, a difference of 32m, the extra dilution is an insignificant 3.7%.

Having said that, I agree with all those that expect the share price to probably head down from here to at least 25 cents and not do much over the next 18 months (unless the USD POG varies a lot up or down).

There also seems to be a bit of concern about the amount of funds being raised. Page 8 of the presentation sets out where all of WAF's $AUD358m is expected to be spent up to when the gold is first poured. The only part of the outlays I have some difficulty reconciling is the $45m on project financing costs, including interest, charges and offer costs. That is a very big bill and explains a large part of the $100m in excess fund raising that young Esh is winging about. I suppose WAF will be paying interest on the loan from when they start accessing the funds, and there are also substantial costs in getting the fundies/brokers involved in the CR etc.

I am underwater as I bought WAF shares at 34 cents in my latest WAF foray. I suppose I will average down a bit at some stage but I dunno when. Getting back to square, let alone making some decent profit is a long way away for me.

The project itself still seems economically robust, but the rewards appear distant. I am gland they will continue to do a reasonable amount of exploration work over the next 2 years as it could really perk the markets interest in WAF if the results are very good/excellent.

GLA.

PS - I think the young pirate wants back in again at 20 cents.

loki (I like Esh. I really do. But he needs to grow up.)