Dodging the Death by Dilution bullet

摘要

Mining is a risky business. How risky depends on many things. Sometimes I think for mining equity investors it's a bit like betting on a game of Russian Roulette being played by the CEO. Investors must also remember that 'death' for the player is often much less painful than it is for them. Sure, when the gun goes bang there is blood on the walls, but the CEO will be paid to walk, the company will raise a heap more equity at bargain basement prices (and often re-strike all the options for remaining management and the board) and the new CEO will spin the chamber and start pulling the trigger all over again.