The consolidation will save the company money by reducing the number of shareholders it needs to service - I suspect a significant number will have a total holding worth less than $500 because they haven't participated in all (or any) of the many raisings over the years.
But cost savings, while important, are nowhere near as important as getting on with the job and becoming cash flow positive. When this is seen by the market to be a long term reality, a re-rating will have been earned.
If the consolidation gets through the AGM, the number of shares on issue will be a mere 44 mill until options are exercised. Trailstone's warrants are a while off converting to shares. Of the 44 mill shares, a large number are in firm hands (eg Sproule family) and unavailable for trading.
With few shares available for trading and Black Oak Minerals making money, the company will come of age - demand for shares will exceed supply.
As a shareholder, I am comforted by the new MD's financial commitment, amazed at the recent deals that have been brokered and excited about the near-and medium-term future.
It's all in the hands of management to create a successful business.
SXG Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
