RE:RE:RE:RE:Thinking more about RE:$100 million annual dividend
Totally agree. Of course a Pandemic was not their fault. The Fiduciaries & BoD did what they needed to do to save the Company. And that includes the Hedging strategy (which BTW, could also just as easily have gone the other way...).
To throw rocks at them now, after the fact, and for rewarding Management with Options, smacks a little bit of sour grapes. If you don't like the renumeration (s), vote against them at the AGM.
Much like when Teck and First Quantum collapsed by over 90% in prior cycles - in Teck's case twice - and then remarkably, subsequently, went right back up, what's important, is to spot these events: ones when excellent, well run companies *owned and run by families that started them*, get unduly punished for macro issues that are frankly out of their control.
And that was PEY. As I may have stated previously, I've been following (and investing in) PEY for almost 20 years and the above is the reason why I bought back in after selling around $7 ish an awfully long time ago...
And now, today, I get to reap the reward for that foresight and patience. With the divvy announcement, my implied anualialized divvy will be over 14% (~ 70k shares).
When - not if - they increase again, and again, this divvy % rate is likely to look rather spectacular.
A few parting thoughts: as I may have said previously, this company is not a *friend of the Street* - they don't do equity deals left right and centre and they haven't been active in the M&A space. Much like the families and Family Trusts controlling Magna, Rogers, Loblaws, Thompson Reuters, Shaw etc., the principles that founded PEY (Don Grey et at) require paying.
And what's wrong with that?
FWIW, the Grey family also saved another Alberta junior from bankruptcy: Petrus.
When you see these guys putting their own money on the line, what is so clever about simply following their lead? Another example would be Eric Sprott +5 years ago. If you took a few of his leads at the same time as he began to spread money around the junior Gold scene, you might too, have subsequently made out like a bandit.
Petrus is up x9 fold since I put a bunch into my TSFA and presents a wonderful platform for a simple replication of PEY all over again.
GLTA.
These are my views only. Thanks for reading.