I just did a quick analysis of the amended payment schedule for the Gullewa proceeds:
.......... BEFORE .......... AFTER
2009.......... $3m.......... $1.5m
2010 ......... $3m ......... $1.5m + $1.5m
2011 ......... $4m.......... +$1.5m
Total ......... $10m......... $10m
So the effect is that payments for 2010 remain the same ($3M). The only change is that $1.5m is deferred from 2009 to 2011.
BTV receives 8% pa on the (effective) loan extension of $1.5m, far more than prevailing interest rates.
Also because BTV has an option (but no obligation) to take ATW Gold shares rather than the cash, the option over the deferred $1.5m has longer to run, increasing its value. (there is greater chance ATW will be over C$1.00 in 2011 than in 2009).
Meanwhile, I am still accumulating, just ahead of the buyback. 2,100,000 shares now.
It is a ridiculously easy strategy to buy just in front of the buyback, knowing that your purchase is supported by 20,000,000 of buying power (16.5%), and the share itself is supported by a cash backing of 11.1cps and over 20cps in NTA.
Also, it seems strange to me that anyone would sell into this buyback at prices LOWER than the buyback a few month ago - the company has already show itself willing to pay 8 cents to buy back shares. Barring the restriction the company has on the WAP from the previous 5 days prices, it will pay 8 cents (and probably more). Why sell for less..???
Oh well, let the sellers come. All the better,
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