Geumyang's Capital Increase: Investor Insights and Future Prospects

Yoon Cheol-jung emphasizes that the capital increase is a necessary hurdle, presenting both short-term challenges and long-term growth potential.

### Navigating Geumyang's Capital Increase: Insights and Strategies for Investors
* 📈 Yoon Cheol-jung addresses the recent capital increase of **450 billion won** for Geumyang, emphasizing that while it may cause **short-term declines**, it can be a **long-term positive move** for the company.
* 💬 He notes that the simultaneous announcement of a **capital increase and delays in mining revenue** has led to critical perceptions among investors, urging them to **adopt a realistic perspective** on the situation.
* 🔍 Drawing parallels with Tesla's past capital increases, Yoon highlights the **importance of maintaining a positive outlook** and the **necessity of such funding for future growth and development**.
* 💡 The community is actively voting on participation in the capital increase, with **over 3,000 participants**, reflecting varied investor sentiments towards the company's **long-term potential**.
* 📊 Yoon stresses that major shareholders and employees are participating in the capital increase, indicating their **commitment to the company's future and debt repayment efforts**.
* 🔄 He warns that the capital increase may lead to **short-term stock price declines** due to dilution effects, but emphasizes the **potential for recovery** if the capital is utilized effectively.
* 🔑 Yoon concludes by encouraging investors to focus on **long-term growth strategies** and to engage with the community for **shared insights and information on investment opportunities**.
* 🌟 He invites viewers to join the community for **more in-depth analysis** and to stay informed about developments that could **enhance their investment strategies**.

Hello, everyone. This is Yoon Cheol-jung. It's the weekend. Today, I would like to talk about some issues related to Geumyang, so I decided to provide this broadcast. After watching the video, if you find it helpful at all, please subscribe, like, and leave supportive comments. Also, our community entry application is in the pinned comment of the video, so I hope many of you will apply.

First of all, a capital increase has been announced, right? Yes, we discussed this previously. While it may trigger short-term declines, a capital increase itself is not a bad thing. The issue is that the news related to this was reported first, and we also analyzed that part critically and shared our thoughts. There are positive aspects as well, and in a way, it can be seen as a short-term negative and a long-term positive.

Regarding the recent capital increase related to the rights offering, we have also seen the announcement about the delay in revenue from the mines. This has led us to adopt a critical perspective. If you are an investor or a shareholder, upon seeing the situation, you wouldn't just think, Oh, I see, that's how it is, and feel at ease. Right? 

So today, I want to discuss things a bit more realistically. The decision for a 450 billion won shareholder allocation capital increase has been made. As I mentioned in the community, the rights offering is a mountain that you must cross. I don't think it's a good or bad thing; rather, it's just a natural part of the process. There were various factors to consider, including the possibility of a third-party allocation before the allocation. However, we have been anticipating the aspects related to the capital increase, and I have discussed this in my broadcasts.

The amount has been reported as 450 billion or 800 billion, and I mentioned that there would be adjustments in that area. The part I talked about in the video regarding the partnership announcement is about enhancing the company's profitability and growth potential. There are companies that do this before a capital increase, like Tesla. I'm referring to Tesla here; this was four weeks ago. It seems like no one is paying attention, but I’m speaking based on facts. In 2020, around September, they announced that they would raise $5 billion through a capital increase. It was good news. However, before this announcement, Tesla had already presented a positive sales performance and a strong profit outlook, laying out a roadmap. They had actually made projections, especially during the Battery Day event, where they revealed plans for new battery technology development.

During the presentation, it received significant attention. At this point, Tesla's long-term growth was briefly discussed, including a capital increase. This related part saw some hesitation, but Tesla has also seen an increase. As I mentioned, if we look here, they said the same thing this time as they did in early 2020 regarding operating funds related to Tesla. So, to elaborate, the recent capital increase and mining development, along with changes in sales and operating disclosures, have led to some negative perceptions, with people thinking that the company is lying. However, as I mentioned in the community and broadcasts, a capital increase is one of the legal methods for securing funds. It is neither a positive nor a negative factor; it's just a necessary hurdle that must be crossed according to the current situation. Therefore, while there may be short-term setbacks, the long-term perspective remains crucial.

You can consider it a positive development. Investment should always be made based on personal judgment. Therefore, investors need to acquire the ability to filter and interpret the information related to companies according to their own standards. Even when encountering the same information, the reason some investors make profits while others incur losses lies in their response strategies. This is not a lie; those in our community likely realize that we are at a low point right now. Many members of the community, when we discussed the potential for a decline, actually focused on buying more, increasing their holdings significantly. Even with the same investment, the movements can lead to different outcomes for investors, and that is where the problem arises. We cannot completely avoid a critical perspective, but it is water under the bridge now. It cannot be undone.

Let's think positively about this announcement. Why did we see such a significant decline in sales and operating profit, much worse than expected? There must be reasons behind the simultaneous announcement of a capital increase related to the mining sector. If a company releases bad news all at once, it can be seen as a more negative signal. However, if we consider it carefully, if each piece of bad news were released separately, it could lead to a drop in stock prices or continued market anxiety. Excuse me, let me take a sip of water. Perhaps this strategy was employed to prevent that by bundling all negative news into one announcement, allowing the market to absorb the shock at once. Afterward, they might aim to recover market confidence with positive news. Could there be something more coming? That's just a thought.

Everyone is focusing on how to present losses and hoping for follow-up actions. My personal analysis is that follow-up actions or positive plans are being proposed. There is something there; it’s a prediction. It's not guaranteed to be 100% accurate. Therefore, by presenting follow-up actions or positive plans, there may be an intention to change the atmosphere. Regarding participation in the capital increase, any positive initial reactions can also be negative, but they can also lead to positivity. Providing existing shareholders with the opportunity to purchase new shares requires them to invest their funds. Thus, through this capital increase allocated to shareholders, the company can secure additional funds for future mining development, overcome delays, or have a new roadmap. There must be something in progress beyond just the ongoing operations of the plant.

It's not that, of course, it will be used for that, but there are plans for the future. The funds from the capital increase will be used for that, you understand, right? So, as we mentioned in the community, we are currently conducting a voting process regarding participation in the capital increase. We have over 3,000 participants combined, and we are also conducting this voting process. I won’t disclose the results here. The voting process works like this: First, there are those who plan to participate in the capital increase, seeing the long-term growth potential of the company. Second, there are those who are contemplating whether to participate in the capital increase. They want to review more information or future strategies during the remaining period and make a careful choice. Third, there are those who will not participate in the capital increase; under the current circumstances, they will not take part in it.

There is a plan for anonymous voting, so it seems like you can join. There is an application for community entry in the pinned comment. You can enter the family room and information room for free. It's a spilled situation. And, well, how bad must it be for companies, right? And, in fact, it's 290 billion, which I mentioned in the community, but it's less than 300 billion. These aspects, while they may seem negative, such as the public announcement and the rights offering being made simultaneously, if we think deeply about it, could imply to shareholders that this rights offering may be a long-term solution and could increase the possibility of participation in the rights offering. And there has been a lot of talk about the development of the mine.

I mentioned before that I feel a bit disappointed about this. I believe that if it had been released a bit earlier, we might have seen better results. As I mentioned yesterday and the day before, mining development takes a long time from the very beginning. If you look at FOSK Holdings, you’ll understand. There have been many discussions about fraud, and it was even mentioned in PD Notebook. So, it's a long process with a lot of uncertainty. There could be various reasons why these development delays were unexpected. They might have had some predictions, or maybe they didn't. Nevertheless, I thought about why the mining announcement wasn't made earlier. I think companies are also observing the trends in the market. Shareholders...

The part about thinking, and where the uncertainty is focused, especially regarding the mining sector, may have been delayed, and companies might have had a rough idea about this. Therefore, tying this to the announcement of a capital increase could be a choice to manage the market's ripple effects. In other words, even if there are negative impacts from supporting mining development, the company may want to emphasize that it is prepared to solve these issues through fundraising. Additionally, we can see a proactive response; shareholders are inevitably sensitive to mining development news and adjustments, as well as negative news. However, at the same time, this was disclosed transparently. After all, they openly shared information, right? They didn’t hide anything. In that sense, there’s a somewhat positive aspect that can be seen.

I want to emphasize that there is an intention from the company to maintain the trust of its shareholders. Through these discussions, it can be interpreted that the company aims to maintain shareholder trust by emphasizing honesty and transparency regarding future plans. This is important, and our community is currently conducting a survey and voting on this matter. Ultimately, our final investment goal is capital growth. We are pursuing asset increase, and the reason for investing is not for donations or charitable contributions. The ultimate goal is to increase capital, and if the company can overcome this crisis and develop into a growing entity, there is a possibility that concerns will arise today.

It is important not to focus on short-term failures or disappointments, but rather to carefully examine the long-term growth potential and strategic direction of the company. When you invest, it can be challenging to practice patience, and while you may have heard about long-term investing, it can be tough. If you find it difficult, I believe that participating in community discussions can be one of the strategic directions to consider. Additionally, buying and selling stocks is a matter of personal choice. There is nothing wrong with someone buying or selling shares. In fact, increasing your quantity and diversifying investments across various sectors, including overseas investments, is not a bad approach. Our ultimate goal is capital appreciation, and I hope you understand this point. While this may be something you already know, it is worth reiterating.

There are a few important points regarding the capital increase through paid-in capital. First, major shareholders and employees are all participating. The scale of the capital increase is about 290 billion won. Initially, it was announced to be 450 billion won, and the media mentioned 80 billion won. Because of this, the stock price dropped significantly. I really want to express my frustration, but I'm holding back. I've already mentioned my thoughts, so please check out my video on the capital increase announcement. I uploaded two or three videos at that time when the news broke. Similarly, I mentioned four weeks ago that a correction was inevitable. The reason this has come to light is that the likelihood of adjustment is high. I discussed the possibility of adjustment, and I stated that the amount would be revised. So, the 450 billion won will be practically adjusted.

I mentioned earlier that, under the assumption that the article about the capital increase for shareholders is true, I cautiously brought up how the chairman might adjust the financial contributions to lessen the burden on shareholders. The amount is actually smaller than the announced 450 billion won. The active participation of major shareholders and executives in this capital increase signifies that they are willing to take on a significant financial burden. Additionally, regarding debt repayment, if you look closely, it states 1 billion won, which also pertains to the 100 billion won burden. In fact, this amount has been specified as one of the purposes for the use of funds from the capital increase. The important point is that this 100 billion won will be covered by the major shareholders.

The intention is that the executives and employees will bear the burden entirely. In other words, the major shareholders and employees will use their own funds to partially repay the company's debts. They consider the company's financial status to be very important. The shareholders understand this aspect and are signaling their willingness to play an active role. Therefore, I will conduct a survey within the community today to see what results emerge later. We have over a thousand shareholders in our community. There are various companies we are investing in, including major shareholders, and I hope many will participate in the survey. This applies to everyone in the community as well. Additionally, aside from the major shareholders and employees, existing shareholders have their funds classified as essential funds, which amount to approximately 350 billion won. Out of this, the major shareholders and employees will...

The necessary funding of 60 billion won will now be filled, with 1 billion won being used for debt repayment. The 60 billion won will be injected into this, so the remaining 290 billion won will be raised from our shareholders' funds. In the case of existing shareholders participating in the capital increase, those funds will be entirely used for Geumyang's major projects or growth capital. In this process, the debt repayment funds that the major shareholders and executives bear will not require additional burdens on the structure. The reason I mention this again is that this structure itself is very important. The active participation of major shareholders and executives shows trust in future growth. Furthermore, it demonstrates that Geumyang is not only raising funds from the market but is also willing to bear significant internal burdens. In this situation, the participation in the capital increase is also a position for our shareholders, aligning with the major shareholders.

Employees are sharing the risks and burdens together, which can be seen as a positive sign. To summarize, in this capital increase, the major shareholders and employees are actively participating in the company's debt repayment funding. This allows us to invest more intensively in funds related to the growth of the company, which will contribute to the stable operation of the company in the long term. However, recently, there has been a delay in the announcements related to the mining sector, which we waited a long time for. This was somewhat disappointing, and I would like to appeal once again to those involved in the financial sector. If you see this, please provide some insights on the progress and ensure that future updates include clear estimates of production, expected revenue, and timelines. This would be beneficial not only for our shareholders but also for potential investors regarding the company's future plans and business growth.

It is essential to make accurate judgments about the business viability, and if such aspects are lacking, it becomes difficult to make precise assessments. Consequently, dissatisfaction and uncertainty are bound to increase. Regarding mining resources, we cannot directly assess them, as we cannot visit them ourselves. Therefore, I hope the process moves forward smoothly. I believe there is a lack of clear specifications on how the related funds will be used. In terms of mining development, initial investment costs are significant, so it is crucial to know how much capital is expected to be invested, at what specific points that capital will be operational, and where it will be utilized. If such information is absent, it raises concerns about how the process is being managed and how mineral revenues are handled. It is disappointing that there is a lack of proper information on these matters.

As an investor, I think about the flow of funds and the company's strategy, especially regarding mining development, which raises more questions. Therefore, I believe it would be beneficial to share more detailed information moving forward. By doing so, I think we can reduce the uncertainties and doubts surrounding the future development of the Congo mines. I also think it would be wise to approach predictions more conservatively from now on, as risks always exist. Although you mentioned that there were visible achievements in the mining results, many were expecting more specific and advanced information. However, the actual disclosure was released alongside the announcement, which can understandably frustrate shareholders. This leads to a critical perspective, as they think, So this is how it turned out.

There probably won't be any shareholders, and the company itself will know this. This is why lengthy statements are issued, apologizing in a way that raises market expectations. I hope you pay attention to these aspects. If there are no specific performance announcements or clear business plans, market disappointment may grow larger. Additionally, since mine development is a long-term project, it would be beneficial to present detailed plans and goals to shareholders to eliminate any doubts and uncertainties. 

It would also be nice to share stories. For example, when we met with Mr. Lee Kwang-yong, he mentioned how much effort Chairman Yoo went through, going all the way to Mongolia. Investors are unaware of such details. Until I spoke about it in the community, no one had mentioned it.

Recently, I mentioned that it would be good to share information through platforms like YouTube. There are many photos of the mine, as you mentioned, but I also pointed out that there was a lot of information that had not been opened at that time. If you could pass that information on to me, I could organize it properly and inform the shareholders. I will make sure to discuss this with the relevant personnel. Anyway, this is a long-term project, the development of the mine, so we need to appeal the exact plan. Investors need to understand the future direction of the business, and just by looking at the discussion boards for this stock, it's quite chaotic. There are limitations in understanding, with talk of operations being scams and the stock price plummeting.

This is something that cannot be helped. Yes, we need to correct the mistakes and address the shortcomings. We should provide more specific information about the project timeline and profitability outlook, which will help us gain more trust from investors. While we cannot predict the stock price direction with 100% certainty, we need to consider the current situation of the company and the market, as well as the factors we are aware of. I mentioned that the current situation is a natural part of the process, and it is a river we must cross. How we interpret the issues related to the mine will influence short-term volatility. Therefore, think carefully about the announcement of the capital increase. Even if there has been no public announcement regarding the mine, the increase in the number of shares through the capital increase will affect the existing shareholders' ownership.

The dilution effect occurs, and this is essentially a definition. The impact of the capital increase is significant, which means that in the short term, there is a high possibility of a decline in stock prices. Although the recent capital increase has been announced to be 450 billion won, even the actual amount of 2,900 won is considerable. Therefore, since there was already an expectation of stock price increases in the market before the announcement, a temporary adjustment may occur. Recently, there had been a trend of gradual increases in stock prices, creating positive expectations. This means that with the announcement of the capital increase, there could be a reevaluation based on how it is perceived, leading to potential short-term adjustments. However, looking at the long-term perspective, there are positive possibilities. The purpose of this capital increase and the planned use of funds will be realized.

Depending on the situation, stock prices can rise significantly again. So, this time, I would like to talk about how we should approach the low points in our academy as well. We are planning to secure funds to repay debts and obtain growth capital, which will enhance the company's financial stability and future growth potential. In fact, in the long term, this is inevitable. Strengthening investments in the secondary battery business and the full-value business of Geumyang can serve as long-term growth momentum. Additionally, the active participation of executives and major shareholders in the capital increase is an important signal, reflecting positive internal expectations for the company. I think we should take a closer look at this. However, we still do not have precise details about the specific conditions. We are also awaiting detailed information regarding the new stock issuance price and the capital usage plan, among other things, which will be discussed in future presentations.

Starting off, regarding the approval of SM's listing, the volatility of the stock price may increase. Therefore, it's challenging to handle this individually. We will analyze the situation directly and prioritize providing information to the community. In the future, the results of this capital increase announcement will likely influence how much the expectations of our shareholders align with reality, which will affect stock price movements. If the market positively perceives how the capital is being utilized and if we can reaffirm growth potential, the stock price may quickly recover after a decline. On the other hand, if the purpose of the capital increase becomes unclear and uncertainties grow, along with any negative issues that may arise, the stock price may struggle to recover. Thus, timely information is crucial in these matters.

I will focus on this. Today is the weekend, so I won't take too long. You all need to rest. Anyway, I talked about the capital increase through the issuance of new shares, and not just regarding Geumyang. In our Yoon Cheol-jung TV community, we provide various investment information and differentiated content related to various industries, including the academy. Besides Geumyang, we are discovering companies and industries that are gaining attention in the global market, and we thoroughly cover essential plans for asset growth. Most importantly, we are actually increasing assets and transparently sharing all information, along with realistic investment options that can help with retirement planning. We go beyond simply guiding companies and stocks to providing content that...

We are providing a way to steadily increase your assets from a long-term perspective, and we are currently contemplating and progressing on this together. If you participate, you will have access to more in-depth analysis and information, as well as the latest trends across the investment industry. You will be able to confirm special information that is not usually covered in our broadcasts, particularly regarding practical asset enhancement. Therefore, I hope you will join us in creating your investment path within our community. Anyway, I will conclude my remarks here. I will see you again next week with something good, correct, and special. Thank you.

금양이 "유상증자" 공시와 더불어 "광산 사업" 관련한 좋지만은 못한 공시를 함께 내놓은 이유는 무었일까? 매도 한번에 맞는게! 단기 악재 장기적으로는 호재!??

세상이 무엇을 원하는지 먼저 찾는자가 성공하는 시장!
개인투자자를 위해 올바른 정보 전달!


윤철중TV

Discussing Geumyang's Capital Increase and Its Implications

Geumyang has announced a 450 billion won capital increase, which may cause short-term declines but is viewed as a natural part of the process.

The company's recent challenges, including a delay in revenue from the mines, have led to a critical perspective among investors.

The speaker emphasizes the importance of personal judgment in investment decisions and the need for investors to filter and interpret company information according to their own standards.

Analyzing the Company's Recent Challenges and Capital Increase

The company has experienced a significant decline in sales and operating profit, leading to a simultaneous announcement of a capital increase for mining development.

This strategy of bundling bad news may be aimed at minimizing market anxiety and allowing for a smoother recovery with positive news later.

The capital increase offers existing shareholders the opportunity to invest in the company's future, potentially providing the funds needed for mining development and overcoming operational delays.

Managing Market Uncertainty in the Mining Sector

The company is proactively addressing potential negative impacts from mining development by announcing a capital increase, aiming to manage market ripple effects and maintain shareholder trust.

The capital increase, involving major shareholders and employees, has been scaled down from the initially announced 450 billion won to 290 billion won.

The company's transparent communication and active participation of key stakeholders in the capital increase demonstrate a commitment to overcoming challenges and driving long-term growth.

Active Participation in Debt Repayment and Company Growth

Executives and major shareholders are using their own funds to partially repay the company's debts, with a survey conducted to gauge community participation.

The necessary funding of 60 billion won will be raised, with the majority coming from shareholders' essential funds.

The active involvement of major shareholders and employees in the capital increase demonstrates trust in the company's future growth and aims to reduce uncertainties surrounding the mining sector's development.

Addressing Shareholder Concerns in Mine Development

The company is likely to have no shareholders, leading to lengthy statements that aim to raise market expectations.

Presenting detailed plans and goals for mine development is crucial to eliminate doubts and uncertainties for investors.

The capital increase announcement may lead to short-term stock price declines, but the long-term perspective holds positive possibilities for the company's growth.

Approach to Low Points and Capital Increase

The company plans to secure funds for debt repayment and growth, aiming for long-term financial stability.

Strengthening investments in the secondary battery business and Geumyang's full-value business is seen as a key growth driver.

The active participation of executives and major shareholders in the capital increase signals positive internal expectations, while timely information and community engagement are prioritized to navigate stock price volatility.