good post, even if I don't necessarily enjoy reading it because it highlights some of my failings.
Firstly, I have not posted that much because I have quiet simply had no passion to do so (plus the company has been very quiet, which can be looked at in both a positive or negative light). A large amount of my net worth has been invested in this company, I have sold no shares, in the highs or lows. I was, for all intensive purposes licking my wounds after having been so blind to seeing GCYs funding position being so weak, when it should have been strong. I usually pride myself on being able to foresee funding issues, in this particular cash, I simply was too positive on the stock and held management in too high a regard.
Also, apologies for my contradiction, I think I was referring to any future raising being in regards to potentially developing their second project, Glenburgh.
I still think the company is going to be successful, otherwise why else would I keep holding, so I feel the 'Titanic' reference is going to far, but of course, you are welcome to your opinion, I really do hope you are wrong!
If I may try to pose some answers to your questions:
The company has made it clear to the market that whilst getting the plant up and running so early was a successful endevour, it frustratingly caused them other issues. i.e Not enough dirt moving equipment available, a huge amount of pre-strip that should have already been completed, some weather related issues initially and finally, grade.... the grade was only going to increase after the pre-strip, but... lack of completion meant they used lots of the low grade material they planed to keep for any issues in the future.. so low grade, plant operating fine, but.. not really making any money, all the while, lots of stripping.
hence... low cash, when instead, they should have been hitting their stride and at the least, ensuring that a raising like the one done was not needed.
I do agree with you about the timing of the capital raising. It was horrendous. But... its sadly, not uncommon for such raisings, but I had been banking on GCY being better than most at this critical point in the company's development stage. I was wrong. At the least, they should have had the foresight to raise above $0.50, but what is done is done. DCN did something similar a while back, terrible raising price, but... they have since redeemed themselves and proven that it was a once off mistake.
I have yet to speak to the company directly yet, but I will, then hopefully I can offer more of a constructive reply.
Good luck to all holders.
btw - Interesting to see RMS make a tilt at EXU. Good projects will get snapped up, but... then its far easier to buy a project when you already have successfully run a mine like RMS has.
GCY Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
