Below is an excerpt (Reason for the Buy-Back) from the...

Below is an excerpt (Reason for the Buy-Back) from the announcements yesterday.

I suggest that the company is telling us their intention here. If the share price is trading at a discount to their (the boards) perceived value. Then they intend to buy back shares. This is, in my opinion, better than giving a dividend to underpriced shares. True shareholder value will come from buying back underpriced shares. I also suspect that they may trade at a heavy discount. The company buying back at 80c recently was great for us all. When they have $100,000,000 free cash flow and a share that is a dollar undervalued they should spend that to cancel tens of millions of shares. Then if you want to sell a few, go ahead.

With the strategy of buying back shares in lieu of substantial dividends. My share price outlook is now above $10

Reason for the Buy-Back
The reason for the Buy-Back is to return surplus funds to shareholders who wish to sell their shares. The Board continues to keep under review other means of returning funds to shareholders and has elected to do so by way of an on-market Buy-Back in order to give shareholders the option of maintaining all or part of their shareholding, or selling all or part of their shareholding, while at the same time increasing the net asset backing per share, in the event that the Company is successful with its TAFTA Claim, or is able to achieve a settlement of the Claim or finalises the sale of Nueva Esperanza. The Company may not necessarily buy back all of the shares for which authority is given by Resolution 2. The number of shares to be repurchased by the Company under the Buy-Back will be dependent in part on the future price of the shares on the market, and the amount of compensation recovered from Thailand under the TAFTA Claim or the terms of any settlement that may occur. The Board continues to consider that the Company's prospects under the TAFTA Claim are excellent. However, there can be no guarantee as to its outcome nor that any settlement will be achieved. A further consideration for the Board will be the proposed sale of the Company’s Nueva Esperanza Project in Chile which at the date of this Notice remains conditional. The Board reserves the right to conduct the Buy-Back for some reason other than the reasons stated in this Explanatory Memorandum, should the Company's circumstances change.