- Right now LYD has 184.6m shares out.
- If we assume the $105m placement they plan to run happens at 25c, that's another 420m shares on the pile. So let's be nice and round it to 600m S/O.
- Then there's the small matter of $160m of debt to pay back.
- Then there's the $60m stream to service, which is (all the silver and 6.75% of all gold produced at $400/oz, though to be fair LYD has only included the silver it will produced in its AISC numbers, so 80k oz Ag per annum shouldn't affect things too much).
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...by diluting them to kingdom come and weighing the company down with debt and a stream that takes virtually all the potential operating profit away from the bottom line (therefore shares) forever. And ever. Amen. Armenia.
Say thank you, long-term shareholders. NR here.
Here's a quick, non-scientific thought or three:
All that on a project with a $338m NPV at $1,150/oz gold (even if you're the extremely generous type of person that lets LYD get away with its very skinny 5% discount rate marketing) and therefore at this point, to sum up and be able to concentrate on other more important matters*, IKN offers up this visual summary of today's news from LYD:
Not the first time for this useful summary visual on junior mining companies, won't be the last.
PS: I adore the way the share price popped form 23c to 25c at the opening bell. It's a pleasure to be reminded how the human animal will grasp at any straw available, however thin or weak. But when it comes to juniors, lasciate ogne speranza, voi ch'intrate.