Geez mate, equity accounting the cash in the company bank...

Geez mate, equity accounting the cash in the company bank account from ~a 0.2 % ownership position is a new one.


I do like that approach. I might try that when my banker is conducting his annual review of the balance sheet for my debt facilities and book the ~$145,000 which would be my equity share if BRK cash was $25 million at the time .

The SP retreat was not caused by the buy back, so the lazy $30 K drop in capital was going to happen anyway. They could have prevented the drop by defending the 1.5 c line but they didn't.... not defending and causing are not the same.

I should have been more specific and said " ... not having to spend a cent from of our own bank accounts"

It all will be worth it in the end, and we will get there.... it just depends on what " the end" means to one. If ones "end" is the SWISH monetisation event then unless that is a full sale of all the SWISH assets they may be disappointed.....under those circumstances we will probably see a significant cash injection into the company, with a proposed large return of capital as cash or a fixed price proportional buy back which should see the company stock rerated by at least the value of the cash proceeds ( after tax).

A monetisation event that is all founded on drilling JV's will almost certainly not rerate the stock to the same extent a full sale would , as the benefits of the JV's would be seen from the significant production cash flows commencing possibly ~9 months after the first drill cuts the ground. A part sale, part JV event should see the stock rerate somewhere in between.

Bear in mind, in regards to where the company is now, DP has said " this is only the beginning". The next BRK iteration after any monetisation is where the real magnitude jump will be made. DP said in an answer on the investor hub to a question from @Krazyplay, the near term/ 5 year goal is to build a business with a US$ 500 million market cap. The sale of SWISH with an NPV10 of US$170 million will not get us there, but will be a significant leg up.


Hypothetically speaking, if DP's aspirational goal is achieved, then at 5 billion SOI, that would mean a share price of US10 cents. With 4.5 Billion SOI, that would mean a share price of US11.1 cents, and with 4 billion SOI, that would mean a share price of US12.5 cents.

I want the company to buy back as many shares as possible. It stands to reason that BRK will be more inclined to reach the 10% and possibly go further, if the market keeps on giving up stock at these levels and lower. I doubt DP would buy back 10% of he had to pay say 2c per share ( my opinion only) .

Not going the full 10% at 2 c or whatever wouldn't be a reflection of what BRK think their shares are worth, but a reflection of what BRK capital is worth in terms of purchasing assets and funding BAU operations that produce the desired returns. We are in growth phase so the competition for capital is significant. I understand people think if they pay more they will be able to pick up more at a faster rate, that may be the case and we all want to see a higher share price. But paying more may possible mean in the end, they will buy back less if the budget is reached before 10% has been acquired. So for right now, this early in the buy back, I am more than happy for BRK to be buying it's stock at lower levels than the 1.5 start. Personally, I doubt they will be able to buy their full 10% at these or lower levels, I think they will have to eventually increase back to and possibly higher than 1.5 c.

Cheers

Dan