So $100 million worth of shareholders funds are in the process of flowing back to ORE right now and will be fully back in ORE coffers within 2 years. Meanwhile SDJ will also be 3.5 years in to paying down their ten year Mizuho debt facility,making for a much stronger balance sheet.
So what to do with all that cash piling up back at ORE - return capital to shareholders or invest it back in to expansion?
$100m among 200m shares is 50c/share to be returned to shareholders.
Alternatively, it would fund the expansion from 17.5 up to 35 - 42.5ktpa. A business 2 to 2 1/5 times bigger than phase 1 nameplate...
Which will do more for the share price?
Personally, I'm more than happy to see the cash ploughed back in to growth.
ORE Price at posting:
$3.59 Sentiment: Buy Disclosure: Held