Although I am not opposed to it, I don't think a buy back will fix the issue in any sort of sustainable way.
The company could find much better use for the cash on hand, which could help diversify the operations and reduce the AISC - as others have pointed out, the Duketon AISC has been on the rise the last couple of years.
In terms of manipulation, the shorts are and have been quite low for a while now (see image below).
Admittedly the fall in the share price is a disappointment given the previous disclosures about production impact last quarter, but as an overreaction from the market, it is what it is and it won't last forever.
The uncertainty around McPs is weighing on the share price, but it is unlikely to be the reason for the declines as it pretty much represents all upside and little downside IF it was to get delayed or knocked back.
A full quarter of production at Duketon and Tropicana will demonstrate to the market the company is well and truly undervalued.
It has been a perfect storm of bad timing with:
- Tropicana having a high AISC in the previous quarter due to the cutback (but that is done and paid for). The benefit of the low Tropicana AISC was demonstrated in the recent quarterly
- Shut down and maintenance at Duketon at this quarter
- HR issues from extended and unnecessary lockdowns, which should start to normalise as states open up and cross border travel resumes
Money is being made, the company is operating to plan, but it is out of favour.
There isn't really any other reason I can see other than people are impatient and are happy to move their money rather than have it sit here whilst these things sort themselves out.
Other gold stocks are down in the last 3 (pic below), 6, and 12 months, but we are unfortunately out performing the market in this regard
(20min delay)