RE:CashBigCountry wrote:
What will the company do with the cash it generates if copper holds? If they already have cap to build Florence by this q, what are your thoughts? They mentioned debt reduction and dividends as possibilities... share buyback perhaps if there's no love from mkt?
Wow Big C, don't mean this to sound negative but, respectfully, a zero chance exists of debt reduction or share buy backs. To answer your question, they are quietly spending money on moving Aley forward and also spending some cash in slowly moving Yellowhead along. Forget about dividends for many years due to their other projects that need cash for required reports, permit applications, etc. In my view, all generated cash goes to the bank for Florence, Gibraltar expansion process and previous projects discussed. Again, not trying to be negative, just realistic about how they utilize generated funds.
On another note, copper is up 13-14 US cents over the last two trading sessions and look how the share price reacted...down on Friday (some profit taking and gap filling to be sure) and a roller coaster today with a 9 cent intra-day swing from $1.93 - $2.02 and currently sitting only up a penny on this big copper up day. What do you think is going on there? My guess is MM's and funds still trying to shake the tree along with day traders taking profits. Probably a different story when management announces Q3 production and permit updates.