OGX 0.00% 0.3¢ orinoco gold limited

From my calculations of what would be required to make this...

  1. 427 Posts.
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    From my calculations of what would be required to make this company solvent to the satisfaction of ASIC and ASX there would have to be either a massive investment by someone or a massive credit raising.

    Either way this would dilute shares or it could be a combination of both but for anyone who owns shares at the moment my calculations tell me that I would expect 1,000,000 shares to be worth less than $100 so it would hurt all holders. I would put mine in the bottom draw so my great grandkids whenever they are born could buy a few lollies or colour in on them.

    Investing more to purchase a parcel of any worth or to average down would be very expensive to the stage that most people who already have a shareholding and have invested in this company would not have the finances to be able to purchase enough to average down to a reasonable level

    After the dilution I could see a share consolidation which nearly always devalues the holdings again and this is not including any future capital raise after a consolidation.

    I think you would get better value in selling your existing shares if it does come out of Administration for the few dollars you would get and put it into any bank share and you would get a greater return on those few shares than what I could see here.

    As for option holders I could not see them getting any return unless there was more gold on site than Anglo American have in all their holdings.

    Remember this is hypothetical and only my opinion as others may have other ideas.
 
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