I don't understand your point about dilution. Any capital raise (by whatever means), if shareholders do not participate, will cause dilution to shareholders.
Printable View
duplicate duplicate
Re dilution.
I try to value the company based on it's market capitalisation.
At 0.002 cents per share the market cap. is about $6,500,000.
At 0.003 cents per share " " " " " $10,000,000.
If the cash issue raises say $3.5 million at 0.002 - 0.003 cents per share that will ADD up to $5,000,000 to the market cap.
A market cap of $15,000,000 for a gold explorer with a strong board, good prospects and money in the bank strikes me as well-priced.
Of course buying shares in NTL is NOT AN INVESTMENT !! - It is a punt.
As pointed out earlier I bought shares in the company recently.
Re dilution.
I try to value the company based on it's market capitalisation.
At 0.002 cents per share the market cap. is about $6,500,000.
At 0.003 cents per share " " " " " $10,000,000.
If the cash issue raises say $3.5 million at 0.002 - 0.003 cents per share that will ADD up to $5,000,000 to the market cap.
A market cap of $15,000,000 for a gold explorer with a strong board, good prospects and money in the bank strikes me as well-priced.
Of course buying shares in NTL is not an investment - IT IS A PUNT.
As pointed out earlier I recently bought shares in the company.
A rights issue will offer additional shares at a discount to the current SP in order to be attractive to investors. As an example if you own 2 apples currently each worth 12c and you are offered an additional apple for 6c then you will own 3 apples costing you a total of 30c or 10c each. However if you choose to not participate in the rights offer and stay with 2 apples then the market value of your apples has diluted by 2c from 12c to 10c. To complicate it, with a renounceable rights offer, the rights to participate may also be sold on the market which if done can reduce the dilution. Another effect of a rights offer is that the SP will drop, as has already happened this morning, as shareholders hedge their bets on the success of the offer as they are likely to be able to buy back in at a discounted price while investing elsewhere in the meantime.
RE dilution, this company has almost gone past dilution unless you are a new investor say 3 years, from here on out its about clawing something back after imo this company has been bent over by previous management, if we could only be mining things would be vastly different, soooooooo many c rs over the years !
Easier said than done I think.
This is an entirely new board with a great range of skills. Furthermore, those skills appear to be exactly what we need to overcome the challenges of creating a profitable goldmine.
I support NTL's plans to raise further capital at this stage. I will be more encouraged if the directors see fit to subscribe for significant parcels of shares in their own names.
Somewhat unrelated: I watched a show on discovery channel where Parker Schnabel was checking out gold mines in NZ. Reckons NZ has the most efficient gold mines in the world? Is that just spin for TV?