SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Mongolia Gold Resources
MGR 21.28-0.2%Dec 3 3:56 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Glen Gordon who wrote (1813)2/6/1998 8:57:00 AM
From: Bill Jackson   of 4066
 
Glen, The function of warrants is to get money into the company by setting some future date/price at which one hopes the warrant buyer will exercise the warrants, at some profit to him.
If he buys shares in the market the company gets no money at all from the exercise and also has transfer agency costs.
The intital offering of PP shares are usually at the market(and now way under water) with the warrants as a sweetener to get their cash.
Since the warrants are out there and the approval process to reprice is easier that getting new ones it makes sense to reprice them to reflect market reality in the hopes that they might get exercised and the company get the funds for exploration.
One hopes gold will return in the spring/summer and we will all have higher priced shares and be happier. In the meantime we can buy shares in a producer for under 20 cents, and they could easily head back to $1 or so if gold returns to $350 or so.
There is an expression called 'bottom feeding', by buyers who look for cyclic drops in prices and load up. MGR and many other juniors are in that area. Thos with strong JV partners like Barrick are better off than naked exploration players, and producers like MGR, RYO eyc are the best as they will have a higher gain multiple if and when gold returns. If gold goes to $100 we will all get hung out to dry.

Bill
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News