Re: PEN - Peninsula Minerals
Hi Barney,
I see your point with the market cap issue. PEN has small market cap that could inflate nicely with Wyoming on line and great drill results in South Africa. I am a PEN holder however I am somewhat concerned not so much about the amount of shares currently on issue but rather the amount of options out there, 1.5 billion. This can't be healthy for the share price. You would think most of those 1.5 billion options will be exercised. So yeah we are looking at 3 billion shares on issue down the track. Market cap wise this would still look good by far compared to a Paladin. Yeah its a psychological thing, market cap is the important factor however easy to focus on the number of shares.
I guess also there is a positive to all this, at least PEN have cash to work with down the track when these options are called. I am sure there will be plenty of drilling in South Africa down the track that needs to be paid for. Hopefully it is a killer high grade low depth deposit which can be open pit mined,
This stock outside of EXT is the only one really that looks like going into production at some stage. So many rubbish U stocks out there. I reckon PEN management see a chance to earn a fair bit of cash individually out of all this potential, I mean moving from the millionaires club some way onto the billionaires club. Gus has I think 28 million ordinary shares. If U spot price goes for another run, PEN can potentially hit a few dollars. This would make Gus a very wealthy man. Point is I think management has huge incentive to see this thing reach its full potential. All my opinion of course and perhaps somewhat hyped,
Cheers.
Hi Barney,
I see your point with the market cap issue. PEN has small market cap that could inflate nicely with Wyoming on line and great drill results in South Africa. I am a PEN holder however I am somewhat concerned not so much about the amount of shares currently on issue but rather the amount of options out there, 1.5 billion. This can't be healthy for the share price. You would think most of those 1.5 billion options will be exercised. So yeah we are looking at 3 billion shares on issue down the track. Market cap wise this would still look good by far compared to a Paladin. Yeah its a psychological thing, market cap is the important factor however easy to focus on the number of shares.
I guess also there is a positive to all this, at least PEN have cash to work with down the track when these options are called. I am sure there will be plenty of drilling in South Africa down the track that needs to be paid for. Hopefully it is a killer high grade low depth deposit which can be open pit mined,
This stock outside of EXT is the only one really that looks like going into production at some stage. So many rubbish U stocks out there. I reckon PEN management see a chance to earn a fair bit of cash individually out of all this potential, I mean moving from the millionaires club some way onto the billionaires club. Gus has I think 28 million ordinary shares. If U spot price goes for another run, PEN can potentially hit a few dollars. This would make Gus a very wealthy man. Point is I think management has huge incentive to see this thing reach its full potential. All my opinion of course and perhaps somewhat hyped,
Cheers.