"If" the forthcoming assays come out really good and "if" further drilling shows really good results then it is a great buy with likely multiple returns and a good opportunity for holders to average down. I'm pleased that they decided to do a rights issue rather than take on even more debt or just sell cheap to a large investor.
"If not" then it's a long term punt on groundrush developments "if" the capital can be obtained from a major investor and "if" the gold price goes up again (one day).
At 2c, the company is doing the right thing by offering all holders the right to buy now - nothing ventured nothing gained. I note that not many sales of the rights are taking place. Quite sensible to wait till the last minute and see what may be announced re assays. No serious buyers anyway.
I guess that the guys running the place are fairly hard headed and have decided to take the punt on the further drilling on the reasonable grounds that it is better to do that than do nothing, particularly in view of the "bonanza" results announced early this year.
TAM Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
