Here's a scenario for AGO'ers to ponder (oh and don't shoot the messenger - it's only a thought?).....
1. We would all agree that as much as AGO would like to undertake a share buy back, let's face it they are hardly in a financial position to do so successfully.
2. AGO BoD obviously know exactly what is going on in house with proposed deals etc in the pipeline , JV talks, income, hedging proposals, revised profit share negotiations etc etc ... and again I am sure we would all agree that BoD and Management would therefore have a strong indication of whether either the OO's or the OA's (or both) are going to reach strike price and subsequently add 6.2 billion shares to the registry.
3. There are 1,744,762,043 AGOO Options
4. There are 4,513,986,260 AGOOA Options
5. To purchase 1 Billion Oppies at 0.001 equates to roughly $1,020,000 (allowing for $20,000 brokerage fees etc)
6. If 6,258,748,303 oppies were converted, this would cause a substantial dilution to the SP.
7. Most companies don't like share consolidation as it has a negative affect on SP period (TEN is one great example of that that I can think of that went pear shaped)
......... SO given that soooo many oppies are being snapped up this year (most at 0.001) could our illustrious new leader and hence AGO be buying them up behind the scenes ??
Could they spend $3,060,000 on (say) accumulating 3 billion oppies..... leaving 3,258,748,303 oppies left to be converted at the price of 7.5 cents each and netting them $244,406,122 capital / cash at bank and at the end of the day they have reduced the number of shares on the register by 3 billion - something they certainly could not do if they were buying shares on market with their current cash at bank (i.e. 3 billion shares at 3.1 cents = $93,000,000).....
Yes I am blonde, but take a minute to think about this scenario playing out in its entirety .... 3 billion shares taken off the market and still net $244 million dollars cash at bank??? Reducing dilution by 3 billion shares and still netting more than enough capital to bullet proof the future
.... Just thinking outside the box !!!
(Not sure if AGO would have to declare this through ASX Announcement either?)
Maybe the new MD is a little smarter than we all think (if of course he is in fact doing this hehehe ) .... but hey someone is 'accumulating' or 'buying' (call it what you like) - just sayin'
Oppies are being traded in big lots and since Jan 1 2017 in excess of 2.5 billion oppies have changed hands (OO's and OA's combined) and sure at least a third of these are at 0.002 so add another $1,020,000 to the above total and make it $4,100,000 round figures ... still cheap to get 3 billion possible shares off the AGO share registry??
All in my opinion and GLTAH
