Saves Miningnut, Flats, Stone Pony and others the effort in projecting likely costs and size of a possible "war chest".
Seems that there is not a huge surplus waiting on the sidelines for take overs, huge Gecamine deals/acquisitions, etc.
The "strike while the iron is hot" scenario suggested in previous posts appears to be pointing in the right direction.
Bill T has taken the opportunity to "bullet proof" the company by putting in place the infrastructure required in order to become a world ranked miner in low cost production. Might be very necessary in time to come - depending on demand, supply and price of copper.
Had the company borrowed the large amounts needed the interest rates and other kick backs usually required would have been a large drain on profits.
Think - for example - the savings in interest made possible by the share issue could now be distributed as dividends. Not that this is a suggestion. But then again?
Anvil becomes a sound, stable, financially sound company as a result of the recent fund raising.
Exploration is an obvious priority. with great possibilities.
Organic growth as has been the way in the past and looks to be the future direction of the company.
With the sound financial position and increasing cash flow one might be forgiven for considering dividends must be a consideration now.
Some HC people will be concerned with the tax implication of dividends - on top of income that puts them on the top tax rate. That the money might be better used in the pursuit of "organic growth" could be suggested.
Whether for or against an early dividend approach one must admit that some pressure may be in that direction.
Interesting times ahead. The uncertainty less. The future promising.
AVM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
