RE:RE:RE:RE:RE:Cash 95 vs 73 end of q2 where does it say the gold notes MUST be taken out next april?
the notes mature in 2024 not 2021, and the payment schedule is spread out to 2024:
https://s21.q4cdn.com/834539576/files/doc_downloads/GCM-Gold-Linked-Notes-Debentures-FAQ-Update-2020-04-30.pdf they have the option to early redeem in april 2021 at 104% of principle, but it does not say they MUST redeem. they have the option to redeem in whole or in part, it does not say they MUST redeem the entire amount of $30 mil remaining.
if they find a good cheap project, they can just as well use the extra cash to buy that project and let the gold notes mature normally in 2024. or if the share price of caldas/goldx/atlas crashes they can buy more shares of those. it all depends on what they decide is the best use of cash.
you are right, trust no one :)
do your own dd
menoalittle wrote: >> guys i dont understand why anyone here would be OK with only buybacks
not that I agree or am "OK" with the "only buybacks" option (because as I noted previously, there is tremendous value in establishing a pattern of steadily increasing dividends), but given how undervalued the stock is, buybacks are simply a much better and far more effective use of funds (because the stock is, in a nutshell, so incredibly cheap at anything below 8, or even 9!)
>> Trust me they can maintain a cash balance of around 100 million
sorry... trust no one. Gold notes MUST be taken out come next April, so that cash (prob slightly north of 30 million) has to be set aside. And taxes MUST be paid in full in H1 of next year (which will be a substantial chunk, trust me... lol.) The big bump up (if we want to call it that) in divy can (quite likely... will) come AFTER that. so, hold y'er horses on doubling the divy. Probably happen ~year from now.
Would be oh so very sweet to have 10% less stock sharing the spoils of war (victory) by then...
This is why I believe they need to stay focused hard on the buy program right NOW, regardless of when, where or how the price starts moving up. Company is just not allowed (against regulations) to buy/push/chase the price up, can only buy on the bid side. Which, if you have ever tried to buy size of something (hot) on a steady rise, it can be a real beetch.