RE: Buyback Concept Like all of you i want to see this trade higher (perhaps with the exception of curve) -- that said, I think a buyback would be akin to corporate suicide for us at this stage of the cycle. Remember CASH IS KING. The only reason we are even on the map, even in the 30cent range is due to our CASH.
Imagine the following scenario -- LVN puts out an issuer bid and decides to gobble up all stock at 30cents and is willing to spend lets say $15million -- so it would buy 50million shares. What happens if Newmont decides to dump their position of what 20million shares....i can only imagine that the floodgates open at that point and we head down to the low 20s...then what have we accomplished?? Dont fool yourself -- that is a real possibility. Newmont is not stupid...if they dump they could buy back the entire position in a week at a third less than they sold (if not a larger discount).
Bottom line for me -- if you think that the way out mgmt can create value is by buying back shares then you should sell quick -- because that implies that there is more value creation ability in them doing nothing than in them continuing to explore & drill. In my experience the real money made in these companies comes when a managment team is doing their job...not buying back shares.
Finally -- as far as the mgmt team goes, I am not nearly as impressed with Ron T. as so many others seem to be. Quite frankly, i think he has done close to nothing for shareholders in ages. No news, no developments no nothing -- quite frankly i dont care if he has a justification or reason for the radio silence (is it because he is operating a discreet division of the CIA and is not able to report...get my picture) -- the SILENCE is deafening and there is the reason we are trading where we are at. Ron...if you are out there, if you read this stuff -- do something smart with your $, do something with Cordero already....this is the cheapest multi-billion dollar asset i have ever seen that no one seems to want to buy -- why is that Ron?