RE:Some Thoughts... Hi Busta,
Whilst I support your sentiments, I don't see how the company can do both 1) and 2). Personally, I'd prefer 1) to be prioritised. Whilst that might be less effective in the short-term at boosting the SP, it improves the company's security and the #1 priority for me is to reduce our vulnerability to being squeezed by our creditors. In the long run that will pay off by increasing investor confidence and that, in turn, will boost our SP.
Once the debt is down to, say, $150m, and assuming the gold price remains stable, then I'd be happy to consider buying back shares.
Regarding Hounde, as I've said before Neil simply
cannot say anything about "backburning" the project, though that is what I hope the company will do. Don't forget that it is essential that the BF govt. is kept onside and I can't see them taking kindly to us announcing that we're putting the project on hold. Another option could be to bring in a partner to JV the project with us, in exchange for a free carry on the initial CAPEX. The project needs very careful handling by our management to keep the govt. sweet without putting financial strain on Endeavour. That may involve not telling shareholders (publicy) everything we'd like to hear.
My overall view is that if management focusses on the business:
- Keeping a total focus on cost reduction and production optimisation
- Being cautious with the balance sheet
the share price will eventually look after itself. Yes, it's tough being a shareholder in times like these, but if those principles are stuck to and communicated to the market, eventually the share price will look after itself. If we stick to those principles, eventually we'll have the cash not only to buy back shares, if they remain ridiculously cheap, but also to start paying a dividend. Short-term: voting machine; Long-term: weighing machine. ;0)
Also worth bearing in mind that if the gold price recovers, "long-term" could come sooner than we fear. :0)
Cheers,
Mark