Post by
cigarbutts on Jan 22, 2019 4:37pm
Dumber than the Rocks they CRUSH
Sometimes you have to wonder IF managment of a certain company IS really DUMBER than a Box of Rocks.
At 2-3X EV/EBITDA net of cash and debt, does ANY shareholder really care about $10M Exploration program.............NOBODY in the sharholder/market community is GIVING ANY VALUE to the Company ExplorationProgram.............SPend less than half that amount and return the rest to shareholders in the Stock Repurchase Program that should have been started already.
IF the market values the cash flow from that mine for maybe 1/2 of what it is actually worth, then you use the cash flow from the mine to buyback ths shares in the market......IF or WHEN the market is willing to value the cash flow from the mine at something closer to FMV based on a discounted cash flow analysis, THEN and only THEN would you consider the future of the mine and mill and use $$$ to explore.
In this case the first use of CASH and CASH flow is to pay down the debt and buyback the stock.
The thing about a blackout period is a LIE. A company can do a repurchase program that is carried out by a broker on the exchange that has NO blackout periods because they can only buy so much per day of the average daily volume....etc...etc. The TSX has its rules on buybacks and you can set up a program with noblackouts.
IF the managment and BOD can NOT figure this out, then don't vote for them. THEY SHOULD BE VOTED OUT. and After voting them out, just sell the company.
IMO it is worth 50% to 100% more than the market price in a sale to another goldminer....
No reason to keep people around so they can havetheir jobs and watch shareholder values evaporate in a future exploration program...........really.
The only exploration program should be to explore strategic alternatives, ie a Company SALE at much higehr values than today.