BJJ,
Great news! I was out at the cricket today so missed the announcement.
This sends two very positive messages to the market:
(1) That GBE is trading well below its cash backing, its NTA backing, and well below the intrinsic value of the company's valuable projects. In announcing this buyback, that value message is broadcast to the market. They are prepared to buyback shares, up to a maximum price of 23 cents. If that isn't sending a message to the market about price and value, I don't know what is!
(2) Minority shareholders, the share price and adding value in the short term remains a concern of GBE management. If GBE was entirely under the thumb of ECE, then short term share price and minority shareholder interests wouldn't matter. All they would care about is growing value over the longer term. But the fact that GBE are prepared to use capital to buyback shares demonstrates they are willing to add value for the benefit of all. It is highly value accretive per share, and will support the price upwards from current levels. A value-adding step, whilst the larger value of Kanyika and other projects are unlocked.
Thumbs up GBE Board! I am sure GBE shareholders welcome and appreciate this step.
With thanks.
Yaq
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