SSL not taking advantage of NCIB - they need to do somethingBased on the financial statements management has only bought back roughly 370K shares since beginning of normal course issuer bid in December 2014 through to the end of March. They have the ability to repurchase 5.9 million shares or roughly 5% of the outstanding shares until December 16, 2015. It dissapoints me to see that four months in they have only accumulated 370K. I was really hoping they had the sense to buy back the 3 million warrants issued to IAMGOLD (Diavik mine deal) at an average price of less than IAMGOLD's strike of $4.50. This would have been brilliant, effectively hedging the upside exposure/dilution to this agreement. A large buyback would have also signalled to investors that management was prepared to put "our" money where "their" mouth is and accumulate shares that they keep touting as severely underpriced. Short of them having a huge deal up their sleeves that they need the ~$40 million in cash and $100 million in undrawn bank line to support, I feel that they have really let investors down with respect to the issuer bid prospect. I do hope that they need this money for far more accretive opportunities that they plan to announce in the short term.
On a side note, this earnings release reaffirms the fact that this company is essentially flat lined and needs to make some big moves to bring near term value to shareholders. I for one, don't plan to sit on my shares for 10 years before any meaningful value is recognized. Some strongly dissagree with me on this, but I wish they would start making some heavy equity investments in busted equity of otherwise sound operaters (there are many out there with terrible share prices and decent operations). Especially the ones in Canada, since the currency exchange has had CAD gold sitting between $1400-$1500 an ounce for several quarters now. That is a nice price for good operators in Canada and they can make good margins at that price.
I hate to be negative on a stock I have afforded so much patience with, but I am going to pack it in with these guys by the end of the summer if we keep seeing the same movie every earnings release. I really hope that doesn't happen and my patience, along with so many other longs out there, gets rewarded in short order. With the Feds inevitably going to be forced to hike rates in the short to mid term, gold likely won't do the dirty work for them. Management needs to take what we have and the gold price environment that we're in and be successful, no more excuses.