RE:RE:RE:This @#$% BOT trader needs a shot of anabolic steriodsI don't think they should be buying back shares here, or at least yet. The thing about Mandalay is that its earnings are insane, relative to its capitalization. There are a lot of things that they can do that will make it clear that it is a real opportunity. I think starting to pay a small dividend would be a good one. However, the real priority is getting rid of the debt and the hedges. Since they have a balloon payment of more than 25 million next year, they should prepare for that by making sure that their cash and equivalents is high enough that they can pay it without getting close to less than 50 million in the bank. Having a real war chest so that they never get into the position of having to accept financing on bad terms again is critical.
Since getting rid of debt is a priority, this year should be one not for returning cash to shareholders but drilling out both mines as much as possible. The time for this investment to pay off is H2 of 2023, when their income increases, their debt is gone, hopefully the price of gold is even higher than today, and both mines have more reserves at higher grades. I would assume that the share price is going to increase naturally before then, as investors anticipate that by accumulating slowly. It's minimal liquidity means that this is going to be kind of discontinuous.