RE:Proposal for Steve Letwin
I have to agree, buying gold is not a suitable investment for this company. After all the shares would be hammered if gold goes down more, and it well could. It does look like though that with many companies now calling for gold at $1000, the necessary capitulation and pessimism is in place for gold renewal. It is worth noting that in Canadian dollars the POG is actually over 1480, and with low oil prices now is an excellent time to own Canadian mines, and IMG has Westwood as well as half of Monster Lake and all (sadly) of Cote Lake. I would rather see the company buy back some shares anytime it dips below $2. They talked about doing it back in 2013, so why not now? Perhaps the bond terms don't allow it...Anyway the company is worth much more than $2/share in this environment, so it is puzzling why it sits there. It must be part avoidance of the gold sector, and part avoidance of IMG in particular. My wish for 2016 is that somehow Mr. Letwin can pull off a revival - share buybacks, gold price recovery, new love for Canadian gold thanks to the low currency, new love for gold as the stock bull gets old, some announcements about IMG properties, and??? with this many possible catalysts, and so much negativity already priced in to gold miners, the balance of probabilites is that IMG will finish 2016 higher than it started....but would you bet your money on that? How many hedge companies out there that have the cash are buying gold? How many would take your challenge and buy up the COMEX? It seems the smart money is still not in this sector or it would have happened. I predict, being somewhat crazy and very brave, that there is a large upside surprise waiting for us next year and IMG will trade over $4 by year end. Anyone else mad enough to agree?