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Debunking capital structure myths

The number of shares on issue tells an investor something about a company’s past but little about its future investment returns. The value of a so-called tight capital structure has been questionable.

Debunking capital structure myths Debunking capital structure myths Debunking capital structure myths Debunking capital structure myths Debunking capital structure myths

Somewhat counter intuitively, Pilbara Minerals has outperformed peers with a tighter capital structure

Having a small number of shares is an investment benefit, according to many junior miners out touting for investors. Executives will rarely explain the nature of the benefit they expect.