TSXV:CAV.H - Post by User
Comment by
mining_pays_my_billson Jan 21, 2015 3:04pm
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Post# 23345152
RE:RE:Boleo is Operational NOW = Cashflow to Us
RE:RE:Boleo is Operational NOW = Cashflow to Us
True Colt, but owning stock in any company doesn’t entitle you to the company’s profit (unless there are dividends as you said). However, if a company is profitable, the share price goes up, and in that way the investors realize some profit- by having bought low and sold high. And to your point about dividends, this is from the Q3 2013 MD&A:
“Baja and KORES have agreed in principle that the New Shareholders Agreement will provide that once the Boleo Project has started paying cash dividends and if the MMB board has decided…”
Now, I understand everyone is upset over the share price, and everyone wants to point the finger, and say “Haha I told you so.” But truth be told, neither side is wrong here- the longs were correct in that BAJ pulled through and the mine is producing, thus silencing those who were saying we’re going bankrupt. The pessimists are right in that the share price hasn’t moved because retail investors have lost faith in the project.