RE:RE:RE:RE:RE:Yess another 225 k cancelledThe ultimate key to a rising share price will be GCM's ability and execution of raising their dividend. All the share price of any stock represents are the discounted cash flows of the streams of future dividends.
Increasing dividends will take care of boosting the share price. Of course, rising gold prices increase the prospects of rising dividends and will also increase the share price. Buying back shares also increases the dividend per share prospects since the dividend pot will be divided by a smaller number of shares.
What is the value of a rising share price though? Since companies utilize their shares as currency when engaging in M&A activity, a higher share price decreases the potential share dilution when acquiring targeted comanpies in a buyout.
All-in-all, everything ties back to the dividend per share potential. So far, GCM has been doing the right things. Fast forward to when Toroparu is in production and the annual gold output doubles. At that point, we would expect the monthly dividend to at least double. If gold prices see a sustained spike past $2,500 an ounce, we would also expect at least a 50% increase in the dividend.
In an evironment where we have $2,500 gold combined with Toroparu production, we would need at least 4 cents CAD monthly dividend per share. What do you think that will do for the share price?