I love the discipline of the KL shareholders today! With the imminent production report, no one is selling. Volumes on both the TSX and NYSE are downright miniscule! It seems everyone knows a good report is coming.
All you have to do to see what is in store is look at Yamana's share price after their production and dividend raise today; 5% + move up!
Apropos the dividend increase. We need to see one! There has been much discussion previously on this board about the virtues of a divi raise versus stock buy-backs. Just think about it! Would you rather have $0.50 per share dividend in your pocket quarterly for two years straight or have KL buy back 20 million shares equating to maybe 5 or 6 cents extra profit per qtr? I don't think any individual or institution would care if KL's profit was $0.75 or $0.80, but everyone would love to see 2 bucks per year in their pocket from holding shares!
I got that $2 per share, for two years, from the amount KL had to spend on a share buy-backs of 20 million!