RE:RE:RE:RE:RE:BargainYes . We will see . 6 mil , even @6 cad represent 36 mil cad or +/- 28 mil usd . Gcm can bear it ,but in my mind the goal should be only but OPENLY reducing the nb of shares even slowly year on year , and keeping this trend .
This Management ( as the vast majority ) does not understand the impact of drying a little the float .
In the gold sector , there is a pure exemple demonstrating at the extreme this impact . The company is a royalties one , RZZ . Yes of course this is not a miner mining , however , this is just to illustrate .
Revenues : 5 mil , gross profit : 2 mil, mcap .......286 millions cad.!! 3/4 of Gcm !!
Since inception 6.5 years ago , mcap has increased by .....6500 % while revenues made x2.
Why that and how is it possible ?
I am not going to develop here what is a classical business , but the absolute main reason for this trend , OPENLY announced , is by buying back regularly every week , few shares and cancelling them . The ceo / founder which has no money at the beginning is also buying regularly few shares for himself . He has a low salary . 6 employees. Rzz has now 12 mil shares priced round 24 cad.
Based on pure margin , rzz is worth 75 times gcm !! ( covid time removed to be fair )
This guy ian ball didn't come from nowhere . He was for 10 years the cfo of mac ewen mining .
As soon as he understood even a legend as robin mc ewen was diluting a lot its own company , and again today , he decided to step down and to run rzz , with opposite methods : buyback buyback...
Result : mc ewen is squandering his money , mux is falling into the abysses , and rzz could be sold 2/3 of the mux mcap. What irony.
May be this principle will have limits . as of Today : N O T.
The More scarse the shares are , the more exponentially expensive they are . Under this assertion , there is lot of discipline , and a goal openly stated.
Gold is expensive , because the main reason is that it is rare . Same for the shares.
Gcm is not an explorer . No need to issue anything with The cash they are making .
Don't know if serafino will read , however i would like to remind him , that he was complaining about the handicap of the weak numbers of shares 15 months ago . At that time the float was 21/23 mil of shares , but the stockprice came from 1.5 to 5 plus . Since this interview , the float is gone to 62 mil . The sp didn't move even with a gold 500 usd higher . All is said .
Long post , but to conclude , i imagine what could be the price of gcm and all its jewels by applying rzz methods -))
Even without going at extremes , i do think theses repurchases will pay off . The sooner the better .
Glta