RE:RE:RE:RE:RE:InsidersThanks Akiba. I mean irrelevant in the context of buying back 30m shares. The debt will be paid off well before 30m shares are bought back based on my interpretation of your capital allocation plans.
I love the concept of a negative interest rate loan with respect to the buyback under 40 cents. Brilliant!
AkibaLeisman wrote: I wouldn't call the debt irrelevant, as it exists. But it is being paid off quickly (> 6m since q3, with another principal payment later this week).
But everything else you said is spot on. We have a seller who clearly is not responsive to new information. If someone told me in July 2020 at our last equity offering of 71m units (30m going to non-Wexford shareholders) that 1m of those shares would be going to investors that didn't care what was going on on the ground, I would have reduced the offering to 29m to outsiders instead. The NCIB functions the same way. Here we got to repurchase the shares cheaper (both on an absolute basis, and on a relative basis, as the mine has been derisked -- so from a NAV perspective it's SUBSTANTIALLY cheaper). Effectively, it was like we took a negative interest rate loan that's getting repaid.
But the actual float (as you said) is a tiny fraction of the I/O shares. Once the overhang is removed, the shares will rerate. If there are natural buyers, great. If not, I'll personally buy. If that's not enough, we have the NCIB too.