Opinion
Buyer beware on capital raisings
The fate of Gascoyne, Orinoco and RCR Tomlinson should remind shareholders to be wary of being approached for funding.
Elio D'AmatoLast week little-known gold miner Gascoyne Resources Limited (ASX: GCY) voluntarily appointed administrators to manage the company as cost blowouts and missed production targets at its Dalgaranga mine meant a material cashflow shortage over the next six months.
At its peak after the June 2018 report, the company had a market capitalisation of more than $200 million. However, this was not when its price was at a record high. That was back in August 2016, when it hit $0.765.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Personal finance
Fetching latest articles