Hi Matty My view on this stock as follows; Buy backs are good....

Hi Matty
My view on this stock as follows; Buy backs are good. Would need to have a reasonable EPS established first, and held for a reasonable period of time to demonstrate sustained baseline [reasonable] attractive earnings. Then a 5% buy back adding that value directly to existing EPS .... (on hypothetically an established attractive EPS), makes great sense and easy to model and bank. Dividend would be a waste at this stage. We wouldn't attract the right income investors long term as there would be too much variability on year to year outcome.
Given the margin on this co. is tight, the right strategy is to continue to build cash as a risk offset. Boring is good for now. And this aligns to MC growth !!!
Once we are in a bull gold market again, which typically lasts for 4-6 yrs, I think a buy back announced after c. 2 yrs into it, may be a consideration. Even then I would keep commitment flexible ... i.e 10% over next 3 yrs in lieu of patiently waiting for a strategic undervalued asset acquisition etc etc. would at least show the market we are focused on driving EPS. For now, earnings are too low. Keep building cash.
cheers
Pez