copper price, page-34

Buy Backs certainly make sense when the market is undervaluing a company.

I'm not at all convinced it would be the right thing for HGO at this point in time though.

WHY?

HGO had a disastrous first half of 2016 which caused a near death experience and a collapse of the share price to 2.8 cents. The share price would have remained much higher than 2.8c IMO if the situation wasn't exasperated by being removed from the All Ordinaries Index in March 2016.
This caused a massive dumping of shares and exodus by several institutions that are covenant driven. Check out the ceasing to be substantial holder notices

The reason the share price is where it is at the moment has nothing to do with the fundamentals or even the markets darling, the PE ratio, its simply that there is no real competition on the buy side.

The company needs to get its market cap well north of $100m so it can re-enter the All Ordinaries Index . That would force the same institutions to buy back in. A strong buy side should have a dramatic upward effect on the SP.

Whilst a buy back might lift the share price but would it lift or drop the market cap?

If the Sept quarter drilling programme produces good results and a mine life extension then, a strong string of dividend distributions starting early next year, should lift the SP above the threshold necessary to get us back in the All Ords and start the Institutions buying and Champagne Corks Popping at my place.