RE:Re re share purchase
james2001 wrote: No taking it down to 600 mil shares over 2 Years would not make any difference all things being equal.I think returning excess cash to shareholders would make more of an impact on share price as you not only attract speculators but you may attract prospective shareholders looking for yield especially if you are consistent with your dividends as well as proving out this property to show many many many years of production at the same time keeping costs relatively constant.imo
where did you come up with two years? You have no idea where the stock will be in six month once it's opened up to quants who will see it for the first time when they report earnings in November. Maybe some new potential shareholders will be interested once it's listed on the TSX or becomes marginable on a stock consolidation. Maybe an analyst will pick up coverage because Mako will probably do M&A with all of its free cash flow. A lot of things could attract new buyers. There really aren't many sellers based on the share turnover.
The fact is, if anyone actually wants to buy meaningful stock it's going to move the price up. When I was running money professionally, I would have appreciated the company was a buyer below me. Maybe someone else will figure it out and start buying soon. I prefer the company doesn't buy any stock at all. The stock needs to trade US$1m of value a day to get into the GDXJ so volume will lower our cost of capital faster than buybacks. The buybacks are a powerful signal that the market may be starting to pay attention to as the volume has picked up a bit recently.
We'll see.