Re: don't like the offers? take it to production..
in response to
by
posted on
Oct 15, 2014 07:01PM
Hydrothermal Graphite Deposit Ammenable for Commercial Graphene Applications
Except the could not 'announce' a future dividend. They would have to finace a PFS, then a FS, then get environmental approval then get onto building the mine. And all of these take time and money and the market knows this. Much like the dip in stock price we saw between the discovery stage and the PEA stage there would be a large lull (longer than the current one) between PEA and dividends.
This is why juniors rarely do iot. They sell to a compnay that does this on a regular basis, has the capital and time to do it. They put this project in their project pipeline.
If you think the stock price is floundering now, i would bet it would be worse if we went full production.
Now, one option is a strategic partner. We could for example sell 60% of the the deposit for $10 per share and capex funding. Then the 40% would be evntual dividend paying. But ask yourself, if you are a miner would you pay $600 Million for a piece of this juicy pie or $1B for the whole pie. AE at the AGM said any monies raised/needed would be 'strategic so they would take some form of a partner.
To me it makes little sense to carry this to production on our own. At the very least I would like to see a large cash/share payout from a JV partner or a complete buyout.