Capital AllocationThe most intelligent use of excess corporate cash is a sizable buyback of the subordinated voting shares. I don't understand why they are considering a dividend, pref buyback or new mining investments over a DC.A SIB.
I'm sure they are well aware that buying back a sizable amount of DC.A well below net book value will result in the remaining shareholders having more exposure to Dundee's existing assets than allocating cash to new investments.
Also, it's important to keep in mind that this isn't a one-shot opportunity. For example, if they allocated $70M to a DC.A SIB at $1.75 they will still have at least $70M in current corporate cash for other capital allocation opportunities. Plus there are the future proceeds from the remaining DPM sale and other non-core asset sales. Also, don't forget that in all likelihood the SIB will be undersubscribed, as they usually are.