North American Palladium(AMEX:PAL)- PGM Producer Message Board

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Gold/Mining/Energy : North American Palladium(AMEX:PAL)- PGM Producer

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To: Ptaskmaster who wrote (541)	4/4/2000 11:41:00 AM
From: Elizabeth Andrews	Read Replies (1) of 976

I think you have to be a little careful when using the term dilution. The coming equity financing means that there will be more shares issued but it is not dilutive and is very positive in my view. If you check out the balance sheet of 09-30-99 you will find a sick company that few serious investors would buy. This is only for the faithful and believers in miracles at this point. The book value is negative $52.4 million or over $4 per share. How can selling new treasury shares at more than this negative value be considered dilutive? If the company were able to sell shares at C$8 or so it would be viewed as highly positive and actually transfers some of the projects future value to the balance sheet today. This helps me as a shareholder. My bet is that new investors will look much more positively on these shares if that were to happen. It ain't bad and it ain't dilutive to the current shareholders. It is the reality of the balance sheet that has to be fixed to go forward.

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