re: Ann: Daily share buy-back notice - Append... Not sure why...

re: Ann: Daily share buy-back notice - Append... Not sure why people think the buyback is about supporting the price. It isn't, nor should it be.

Buybacks are about increasing the value per share. You don't see the benefit of a buyback until later. (Just like WE don't see the positive effects of buying shares straight away - the payoff comes later if we have bought well.)

So when nickel prices improve and producers are making money hand over fist, the company has less shares on issue. And the price they had to pay for that reduction in share equity is a pittance. It is value accretive per share to buyback cheap shares, not share 'price' accretive in the short term.

No one likes to see their company's share price drop. Me included. And it may give holders some psychological respite to see the company buyback more aggressively and support the price. But clearly that isn't going to happen. MCR is in such a strong financial position today because of prudent capital management.

On the Papuan exploration ... I tend to agree with some of the comments. Although the 'payback' in terms of mining would be many years down the track, the reward in terms of drill results and share price spike can come a lot faster. And let's face it, if MCR finds anything decent, these assets ultimately go up the foodchain to much bigger companies who can better manage the risk - that is how a junior like MCR makes a return on their exploration. It is a very challenging jurisdiction, but unfortunately it remains one the last great highly-mineralised frontiers. The risks are manageable in terms of expenditure, but the rewards are huge if we hit big intersections of copper/gold porphyry.

Yaq