If they paid out 50% of profits - say around $20 million - as divis then they've still got 50% left for growth / expansions. $20 million a year is plenty to acquire some new tenements and drill them out (with a massive sum left over). Share buybacks would be great. But they also don't contribute to growth and are just as (un)sustainable as divis, with the added benefit that it would be easier to raise capital with a higher share price and less shares outstanding. At least with divis you attract interest from a different type of investor and bring more attention to the stock.
Wouldn't it be better to focus on extending LOM at Juardi rather than outlaying substantial capex on a new plant somewhere else? Expecting to get 5-15 years (1-3x increase to LOM) more from the 'nearby low grade tenements' might be a bit too optimistic though.
BCN Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
(20min delay)