RE: RE: RE: RE: RE: RE: offering and repurchase/wo Just to clarify. I believe they either had to issue the new notes or payout the existing one out of cash because according the CEO of this company, the current note is falling due in March so this is the primary reason for the offering to pay off the existing one. Why they made the offering larger to me was opportunistic because of the very low cost of money. As a mining company with two mine development projects heading toward construction having the extra $130 million of cash available is a heck of a lot better from a convertible note at $20 than simply issuing equity. I believe the next thing that will happen is that they will sell their remaining shares in Pretium Resources for another $225 million. So if you add these amounts to the exising cash on hand of ~$330 million, you have the funds on hand to develop almost all of Pitarilla and San Luis.
The note has an interest rate of only 2.875% which is very low IMO for a mid size miner with its only operating mine in Argentina.
What the heck is wrong with that. Much better position that many other peers. The now have between cash and investments approximately $675 million which is $8.50 per share.
Correct me if I am wrong.