RE:RE:RE:RE:RE:News Release
novacapital wrote: lets all priase Akiba...like method. and intrinsic value...
I do think Akiba is great. He's making the right business decisions. Gold investors prefer promoters and hucksters. There isn't much selling based on a percentage of the shares outstanding. It's absolutely clear there also isn't much buying either above 36 cents (but there are buyers every day between 30-36 cents). The Wexford debt should be paid off in the next 6 months. Maybe buybacks or a dividend then will help increase demand by sheer force or by attracting a new set of buyers.
Look how much the dividend has helped FISH. I sold most of my FISH to buy more MKO as I'm one of the idiots that keeps believing MKO intrinsic value has a high probability of being materially higher and Mr. Market is offering up a bargain. It's all supply and demand at this point.
Ask yourself, if the mine is producing US$75m in cash flow in 2023 will the stock still be at this price?
Up until now, Wexford has been putting capital into the mine. As they are good capital allocators. they try to get high returns on their capital. Starting in the next 6 months, Akiba (and Wexford) will have excess capital sitting at MKO.
Maybe they want MKO get to a certain net cash level first but then presumably they will want to use that excess capital to invest in high return projects. Drilling and capex is easily covered. Buybacks have a high return but reduce the float. Reducing the float reduces the chance of getting in the GDXJ which will materially reduce MKO's cost of capital. It might also send a signal for funds to start buying into the story as doing buybacks or paying a dividend is a big deriskijg event.
Hope you all remain shareholders. We need everyone we can get