GREY:PGDIF - Post by User
Comment by
justanormalguyon Jul 19, 2016 10:02am
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Post# 25064693
RE:DDC is a buy
RE:DDC is a buyIMO. Be very careful with DDC.
The only reason they announced a share buy back and an intention to look at increasing their dividend was to counter the dud Jay Pipe results. That is the only reason the stock price is holding. One small unfavourable change in their input variables will put them at risk of even paying their fixed costs, and putting the mine on care and maintanance. Too risky for me until that stock drops to $8 with their current dividend.
If that is their intention to use their cash that way, it is scary. That says they have no other better alternatives to receive a better return on that cash, for example like more exploration or a cheap acquisition. Good luck with that.
As a long PGD shareholder, I don't want their paper. Maybe 50% cash, 50% in equity in a new class of shares that get treated the same way as current common DDC shares, but eligible for an annual additional dividend based on a % Gross Over-riding Royalty at Chidliak. Won't happen.