RE: Instead of selling, start a buyback program
RE: But we are
trading at around 5 times this year's cash flow.
For comparison, other precious metals royalty companies are valued much higher. SLW is trading at some 10 times
cash flow and Royal Gold at around 20 times CF.
If SST is trading at 5x CF, and SLW is trading at 10x, first you have to ask yourself why - one answer is that SST is too small a company for the market to recognize and trust SST - and secondly, if SLW can generate a larger multiple on cash flow, won't you get immediate value as being part of SLW i.e. the multiple increases when cash flow is realized? I suspect that the value of SST will appreciate just as quick or quicker as being part of SST than it could by itself.
I would love to have a better exchange rate from SLW or anybody else. But the fact of the matter is that nobody else stepped up, and SST isn't getting the same multiple as the rest of the industry. I don't think you blame that on management of company.