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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Vosilla who wrote (85369)8/20/2007 6:37:20 PM
From: Silver Super Bull  Respond to of 110194
 
John,

RE: "Dilution needed because costs to extract the stuff have gone sky high and the price of gold is still way too low for proper ROI relative to the risk and outlay on the front end?"

That may be the case for some of the juniors close to or already in production. I was talking more about the juniors that aren't near production. Many have gone hog-wild on the financings, for whatever reason. IMHO many juniors, if given the opportunity to do a financing, will do it (relatively) regardless of the effect on capital structure or whether the financing represents a good deal (especially from a longer-term perspective) for them. The end result is many juniors with gobs of shares outstanding.