RE:RE:RE:RE:RE:RE:surplus cashah that makes sense, the "usual" means cost overruns of typical management teams building a project. i do not recall gcm management having cost overrun problems. they have performed well in construction and operations, increased production and profitability. for the last several years they gave conservative guidance and have met or exceeded production guidance. their handling of cash has been conservative, raising more cash than they needed. their past performance does not indicate they would have that problem. every project normally has a budget for possible cost overruns (like 10% of entire project).
say the updated pea does not reduce the capex as hoped, and say intead of the 379 mil capex of original project, the actually capex uses up the entire cost overrun budgeted in the 379 mil project, and it unexpectedly grows into the entire 410 mil of total funding.
then gcm still has around 100 mil cash at the end of the year and that cash grows every year. they can easily allocate 10 or 20 mil of that cash for annual share buybacks.
Eap5522 wrote:
invest, I think satuple is trying to say that Toro is going to have a higher capex than what management is expecting. I don't think so myself, IS and the team are very smart people.