"buying back shares does nothing for cashflow" Buy-backs are...

"buying back shares does nothing for cashflow"

Buy-backs are negative for cashflow.

Not just the lost cash spent on the buy-back, but interest if it was funded by debt for example, or simply lost potential from lower re-investment.


LotusHall gave us a loan (at a high rate) because it would benefit them directly by helping us to get back to mining. So they get double benefits - 10% or however much, plus mining contracting fees. And the funds are being put towards commissioning - improving cashflow, reducing risk.

A bank would not have the double benefits to fall back on, and if used on a buy-back, the funds would be leading to weakened cashflow (cash gone, no re-investment in assets, interest still due).