So, on Monday this week BGL sold off 15%. No announcement from the company, so we could say everything is going fine right, and the stock is just offering a discount right? The rest of the week you've probably already read in the papers.
There's been whole bunch of companies having issues with starting up production and it's a known risk point. IMO that's why it's important to get regular updates on starting up, or some people can just assume the worst.
Additionally, you need news and research to get new buyers. I hope that the company is putting the hard word on brokers (there's a couple that have made nice fees out of them in the last 6 months!) to get some research out.
On the buyback, I think it's a good idea. The company can actually just announce a buyback of up to 5% of shares within 12 months as soon as monday morning if they wanted, and buy back as few shares as it likes or go all the way up to the 5%. I think they still need to do the mill refurb on time. I expect that in an objective sense it's the most value maximising thing for the company to do to get the extra margin on processing sooner, but given the big rise in the gold price since they first acquired POS for the mill there should be some spare cash to deploy to buyback.
HRZ Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
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