Insider and Stock purchases Bonifacio currently has 1.725 million shares. In the last 3 months alone he has increased his shares by a good 20%, i.e. by almost 300,000 shares.
Insider purchases speak against the assumption that one wants to rely on compensation. Rather, insider purchases indicate that someone considers the share price to be undervalued and wants to participate in the expected new valuation by the market.
And the expectations of an insider weigh more than the expectations of a non-insider. He is simply better informed.
The value of Alta - I think we agree on this - is not $100 million. Even 300 million would be too little considering the existing resources and the market environment.
We will receive an adjusted resource estimate soon and drilling on Sur and Verde is planned in 2024. Based on the preliminary studies, resource increases of a further 2-6 MRD p Cu are to be expected.
If we now get the market environment for copper that many market participants expect, namely prices of USD 10,000 per ton in the next 1-2 years, then Alta's NPV increases to USD 2.24 billion after taxes. But some see prices of USD 15,000 per ton, Ivanhoe legend Robert Friedland can even imagine prices of USD 84,000 per ton at the peak (i.e. a tenfold increase from now). He is not a no name in the industry.
If we stay at $15,000 per ton of copper, then the NPV would increase to about $6.2 BILLION if I'm correct.
Taken together: insider purchases + resource expansion + rising copper prices give me a scenario of arguments for an expected significant increase in the company's value.
My conclusion is therefore clear: Against this background, Bonifacio will perform much better with his shares than with a severance payment. He knows this and that's exactly why he buys it.
That would be my assessment.