No doubt the answer is a capital return, eventually.
We don’t need to worry about what directors do with the cash because they are in BTV FOR THE CASH.
Directors have been purchasing shares on market for that reason, CASH and now have approx 12% of the Ord shares on issue and the buy-back will only benefit them.
They also took up most of the option issue shortfall in Dec 2008 and have a combined total of about 50% of the options issue (about 20 million options!!!) Why???
Like you said Yaqona (I totally agree with everything you have posted by the way) the current NTA is about 21.5 cents and about 23.5 with a completed buyback. That is assuming the buyback is completed at an average of 8 cents per share. So directors will benefit more than anyone else via a capital return.
The big uncertainty for me are these options in ATW for C$1.00. What if ATW continue to do well and the price of gold increases and say ATW trade at C$2.00 per share? Does that equate to $20 million CAD if BTV elect to receive the shares instead of 10 million in cash?
THATS TWICE the amount owed!! Plus currency difference!! I think directors need to clarify this “option agreement” and what they intend to do as this is very significant factor in valuing BTV.
I know one thing if they elect to receive shares they won’t be holding onto it.
For shareholders to achieve maximum value BTV need to receive all cash receivable from ATW sell all their investments distribute ALL the cash to shareholders and cease the operation of the company.
What are the chances of that happening........ 22 cents currently represents 3 times the current share price in over 2 years. I’ll take that
BTV Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
