RE: Incompetent CEOthis deal clears things up again.
Kinross saved HW's a$$ when thw company was capitalized at LESS THAN the value of the deisel in the diavik tank farm because of a 75M bank debt that was coming due which banks refused to deal. The diamond industry across the board stopped without banking.
the cost of the crisis to HW was 36.6% share dilution. production is down 30% from the heyday of 2008, but the rough prices are fully recovered. ownership is back to where it was, so its easy calculations to see where HW should be........ Q2 shoudl look good, A21 ore should come back into the ore reserves, there is room for cost improvements with the underground mining.
I consider that Kinross came on board to be HW's senior partner should RTP have sold their 60% of diavik in the midst of the crisis. Meanwhile, RTP has committed to diamonds, so diavik is off the table. No need for Kinross anymore..... time to bring back the dividend because there are no acquisitions worthy of diavik at this time. all other things equal, HW could post a 0.45/share dividend (diluted and production adjusted to the original $1.00 dividend) that woudl get the dividend funds buying again, and it was the TSX index buying that brought us up to 15. Remember, it was the index sellingthat rocked HW down to 5, and the dividend fund selling that forced the shareprice down to 2.30!