Post by
Catscratch on Apr 10, 2023 3:22pm
Capital Allocation
It's interesting to see the evolution of the language used by Jonathan Goodman in Dundee's diclosure docs (like today's NCIB press release). Clearly capital allocation is a high priority and he is talking and acting more and more like a quality capital allocator.
Still room for improvement on capital allocation and related elements (couple ideas below) but I am impressed by the capital allocation decisions Jonathan has made so far.
- Increase insider ownership of stock by requiring the board and executives to own at least a certain number of shares (if insiders aren't willing to buy the stock, why should outsiders?).
- Announce a plan to eliminate dual class share structure. The Board should want to be held accountable by all shareholders...if the board isn't performing, a simple majority should be able to make some changes. This would improve Dundee's shareholder base IMO ( "companies obtain the shareholder constituency that they seek and deserve." - Buffett).
Comment by
Macpoor on Apr 10, 2023 9:02pm
Dundee Percious Metal is now 52 weeks high. In hind.sight , was a bad idea we sold our top holding DMP? Cheers, Mac
Comment by
Catscratch on Apr 11, 2023 9:38am
I think selling DPM was smart. Dundee redeployed the DPM proceeds into share buybacks at good prices and made some mining investments that so far look to be outperforming DPM (Reunion, Magna, Big River/Borborema)
Comment by
TheCount11 on Apr 11, 2023 1:01pm
I wonder if Dundee becomes easy hedgefund exposure to jr mining with free TauRx potential massive upside? Everything is coming in the right place at the right time.
Comment by
Catscratch on Apr 11, 2023 2:42pm
I would say that is a fair way to look at Dundee. Even if TauRx is a zero (which I think is unlikely) Dundee is still very cheap with a lot of other possibly catalysts. Hopefully we see an acceleration of share buybacks! as well as more insiders putting more skin in the game!
Comment by
TheCount11 on Apr 11, 2023 3:18pm
Dundee is the only stock where I want the stock price to go lower as I keep adding to my position before TauRx is likely approved by health authorities.
Comment by
Macpoor on Apr 11, 2023 5:57pm
Thecount11 , Former DPM's Ceo joined Reunion Gold. I am just wondering this move telling us something. Few months ago , Rick mentioned that Reunion might be looking for merger or taken over.
Comment by
Catscratch on Apr 12, 2023 9:40am
Reunion is certianly one of the more significant assets and possible catalysts within Dundee. A take-over would be likely scenario as is often the case in mining. Barrick owns around 8% of Reunion.
Comment by
TheCount11 on Apr 12, 2023 11:38am
Reunion just uplisted to OTCQX giving company greater visibility. I hope Dundee holds onto their Reunion share. Dundee is under appreciated and trades at a massive discount so keeping a large stake in Reunion is like an advertisement in my opionion. Imagine if Dundee cashes out of TauRx after approval and is able to hold a bunch of mid tier metal companies.