Dundee Corp T.DC.A

Magna Acquires a producing mine from KGHM

[Catscratch]

Dundee owns 21% of Magna which is up over 30% today on this news.   Dundee's investment in Magna has a market value of $40M (almost $0.50 per DC.A share).  Dundee equity accounts for Magna so this value appreciation won't show up on Dundee's report NAV per share.

https://stockhouse.com/news/press-releases/2024/09/12/magna-mining-acquires-producing-copper-mine-in-sudbury-from-kghm-international

[CBalardo]

I just boggles my brain how it takes so long to bleed into DC pricing. In the 90's I would be 5.3 seconds.

[Catscratch]

I think Dundee (Jonathan Goodman) still has more work to do to regain awareness and trust from institutional investors.  It will take time but if Dundee continues to create value, grow their NAV and demonstrate smart capital allocation and evenutally the stock will appreciate.

[Catscratch]

Speaking of which there is another excellent interview with Jonathan on Dundee's where they really dig into their process to indentify opportunities in mining. I like hear him say things like "I am a traditional value investor I want to get something for less than what it's worth", "we want to make sure there is a margin of safety", "capital allocation" etc..

[TheCount11]

Very exciting time for Dundee!  I think the NAV gap will reduce once investors get comfortable seeing management buyback stock.  Hopefully the story is that simple.  I would also like hear him say things like "I am a traditional value investor I want to get something for less than what it's worth and thats DC.A" I worry I will run into him with a metal detector

[Catscratch]

My quick esimate is they will have pro-forma cash at September 30 of about $45M and no debt or prefs.  I would like to see them allocate $20M to share buybacks this fall. With no debt/prefs and cash flows from Borborema starting in early 2025 Dundee should be in a good position to run with less cash on the balance sheet. Also the market is out to lunch today.  Dundee's largest

[Macpoor]

Catscarch, you make prediction about everything but not nention anything regarding dividend. Are not you excited for any dividend payment every three months? I am hoping that we hear , starting 2025 we get  paid dividend .

[Catscratch]

A dividend doesn't really work with the lumpy cash flows today.  Also, buying back stock first is a far better capital allocation decision than a dividend. .... Maybe 5 years from now we can get a modest but growing dividend with another couple cash flowing assets like Borborema (like a mini Brookfield Corp but in mining).  That said, the discount to NAV should be dealt with first

[TheCount11]

"If they can buyback 10%".  They can.  I think they will.  Low hanging fruit.  Share count: December 31, 2017 there were 58,816,407 common shares outstanding. How many this year?

[Macpoor]

Thecount , i think there are over 80 million shares outstanding

[TheCount11]

Yes currently over 89 Miilion.  Think management buys back 1 miiion over next 3 months   

[Catscratch]

Dutch auction SIB to buyback up to 15,000,000 shares between $1.40 and $1.60.  They did this exact thing in 2020...here's the press release... just update the dates and re-issue the release. here's the press release:  https://financialpost.com/pmn/press-releases-pmn/globe-newswire-releases/dundee-corporation-announces-intention-to-launch-a-substantial-issuer-bid-for-up-to

[TheCount11]

Great idea!  Would love to see a SIB but think the chances of it this year are, unfortunately, low.