Mercator Minerals Ltd MLKKF

RE: I''''ll post this again, looking....Jims101

[ElJ]

Jims101, Good question for student discussion...... I suggest that a corporate perspective in addition to an individual shareholder view can present useful insight... Example: Think in terms of corporate market capitalization....what happens to this as shares are bought-back and cancelled(assume for simplicity(though not practical reality) that the starting point of buy-back is at a point where the shares are priced at "correct corporate value"...... cash leaves the corporation in exchange for cancelled shares....corporate assets are reduced by this pay-out of cash. There are many other considerations....example A growth premium may be built into share price in the marketplace and signals that growth strategy has been eliminated from corporate plans could have a significant impact on price in the marketplace. Another consideration in the general scenario that you outlined is that the starting financial structure(example the relationship between outstanding debt and equity for the company) will change as shares are cancelled(assuming again for simplicity that all other things remained unchanged). Capital replace investments will also be required to keep operations sustainable on an on-going basis(given the life expectancy of ML at Mineral Park) and so at least some cashflow would need to be conserved for that purpose as distinct from growth. My intention here is not to get into a drawn-out debate about cash cow vs. growth corporate strategy, but rather to introduce a few considerations within your share buy-back scenario, Peace, Good Decision-making to All, ElJ