RE:RE:RE:New Press Release - Mandalay Resources Announces Resignation of Board MemberIt's not fair to say I know if that conversation was had (it'd be speculation) but officially he resigned. By the looks of it he dumped all his shares (only one share holder mentioned it briefly during the earnings call) then shortly resigns. He was with the company for a long time and shareholders weren't complaining so I don't think your right on that.
If they only had a gold put contract I'd agree but this contract comes on top of the garbage hedging contract (they've now delayed) where they've effectively payed to give away money unless gold drop approx $600 from here. Their CFO should be sacked
As another poster mentioned (one who's dropped his position after many years holding) it might be telling to how marginal they feel the operations and are scared of the price of gold going under $2k. To me it shows they don't understand why gold is moving higher and would rather waste money and make silly financial bets on the price of gold.
Duffy lead the refinancing to prevent bankruptcy and set up Mandalay to once again make money as a gold miner. His aim was to reduce debt, organic expansion of resources via more exploration, and to return capital to shareholders once the company had a sufficient buffer to do so (like now imo)
Under Duffy they went from potential bankruptcy to nearly $4 Canadian in share price and restarted the NCIB (and actually bought back and cancelled shares). He was unlucky to have some operational mishaps that reduced gold production but that was out of his control (and fixed asap under him)
It seems like you don't know anything about the guy's time as interim CEO to say something as careless like that.
The new guy hasn't done anything (all this cash flow is thanks to the set up from Dominics work) besides sign off on terrible financial arrangements and say he's only interested in doing M&A in a gold bull market (which I still believe is a bad Idea as Mandalay will overpay for any asset now).
When the share price was under $1.50 they didn't buy a single share so they what makes you think they'll buy any now? It's a token NCIB. Even I was telling everyone on this board to buy at $1.50 Canadian as that was stupid cheap while gold was over $2k. The new CEO is not interested anything but M&A
The company used to pay a dividend. With the cash position and cash flow they have now they can afford it. Returning capital to share holders in an affordable way is never a bad thing. M&A in a bull market is usually a bad idea as you overpay 95% of the time for an asset.
All they need to do is ride the higher gold prices, build up their cash and return some to the shareholders (more exploration spending is fine if not welcome to maintain mine life) and enjoy the profits of being fully leveraged to higher gold prices as a large junior company.
They can wait till the next bear market to gung-ho and buy good assets off distressed companies at amazing prices. That's the best way to grow a mining company via M&A