Food for Thought, page-31

Yes, the cancelling of shares is the very definition of a share buy back. The remaining shares consequently aportion a greater equity stake and are therefore more valuable. It’s the opposite of a cash raise when new shares are issued and existing shares become devalued because each share is for a smaller bit of the company. In a way, you weren’t completely wrong saying theoretically they could eventually resell the BB shares equating to no overall cost… in other words, a cash raise exactly equivalent to the cash cost of the buy back… (or they can issue any amount of new shares in a CR subject to ASX rules) but that’s the last thing they should be doing if the company progresses and it would look pretty stewpid. But I have seen companies raise some time after a buy back and you just have to roll your eyes and wonder!