Samscout
I must admit I used to think like you , but I have seen many buy backs wasted , and after they have happened the company has done something that has required capital, so they end up doing a raising or getting debt .
Up until the last quarter , IO was falling with no bottom in sight , closure costs were a lot higher and cash a little less , so as an example in June 15, they would have needed to spend 46 m on closing of the rail contract , 38m closing KI and EH and cash was also less.
The other point worth noting is its only better to buy back shares of they are cheaper fun dentally than another asset. The fact MGX trades below can tells you how much resource assets are undervalued , so they may end up with something that is worth double or more valuation wise
Haven't said that , now with cash flow looking very likely to be decent this quarter, it may be a good time to start a small buy back
MGX Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
