Loading ...has been a royalty company (Abitibi royalties rzz abytf ). He should have listened to his ex mux ceo …… Ian ball. Ian Ball got Abitibi down to less than 11.5 mil shares.
NO MUX ceos combined have spent more time at the mine sites since Ian Ball left. McEwen could have easily did with MUX what Ball has done with Abitibi.
McEwen pounded the Canadian brokers when he did his rights offering several years ago so this share pounding and share dilution he has received is a payback.
http://www.abitibiroyalties.com/investors/letter-to-shareholders/may92017/
Ian Ball on issuing shares
“The cost to existing shareholders when equity is issued is always high in mining (and most industries for that matter). Shares are typically issued at a discount to market (up to 20%), fees are paid to financial advisors (typically 7% of the total raised), warrants are given to new investors in order to “entice them to buy” and some are good for up to 5 years! Lastly, there are legal and exchange fees. Add it all up and you can see why issuing shares is a costly exercise. You will probably hear counter arguments such as, “that didn’t stop my junior explorer from doubling or tripling in 2016”. It is best not to confuse brains with a bull market. ”