RE: Why spend 50-70 million on another projectFirst and foremost I generally agree with your "opinion". The best return, especially on a risk-adjusted basis, is for ARG to buy-back its own stock at any level below $3.00/share.
Management is doing two things right. 1) Running on efficient operation and generating huge profits despite adversities (production volume shortfalls and jump in energy prices) and 2) Paying at least 30% of earnings in the form of dividends.
Most companies can't get both of these right.
But I believe they are wrong to not buy-back at least some shares.
But that doesn't make ARG a bad investment or that management is making bad decisions in general.
In the long-run you do want ARG to grow and build its asset base. As well, the bigger you are the less volatile your earnings will be. Bigger copanies also tend to get better underlying valuations.