Why pay for 12c a share when you can get the same for 10.5c on the market? and if you wait for the next raising which is about the end of the next quater you will get it for 6c! the offer is an insult to share holders after the management lay on their belly wrecking the share price with count less of raising without any performance to show the market. This just show that the current management ran out of ideas and desparated now they just sell share to fund their huge income.
I will just say to the management of this company that now they will do us share holder a favour by hand in the resignation and hand it over to someone who is capable just so we can reorganise the business. As with the current contractor and their work force the company will have to send them a clear ultimatium matching order that is perform or face closing down.
I don't think they gona reach any target with this kind of work force. it will be suicide to throw good money into another black hole in South Africa. So the option at hand would be to close down and sell equipments in SA and refocus on the WA mine development. Obviously the cash cost of production per ton there are over under estimate. If you take the average production $ receipt figure divide by the employee + production related cost then that the reason why they are in the red for nearly 3 years. The name plate is just a fictous figure which doesn't exist in their current arrangement. The management must come clean on this and move on.
PLA Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
