they just wrote off one fourth of book value and cut dividend, personally I would feel that based on closing price that this should go to $24 to $27 which would then yield almost 2.5% and that is still a stretch except IO prices are higher and this could improve but I would have to look at stockpiles and see if they sold off inventory and this inflated the earnings after write-offs. The Board of Directors has finally stepped forward and done what was needed now the sell off then a chance of recovery, but get out of the way if you can until fundamental change. Of course i have been saying this since $93
IO prices dropped like a rock. we all know that. the only "inflated" thing was management spending your money on acquisitions that had to be put on the books as goodwill. Hence, the balance sheet got propped up.
Income statement was fine. IO prices tell the story. And now management is a tail wag. As in, this goodwill write off is best to take in one quarter, when the earnings suck. Put it all in one quarter and be done with it. Maybe stockholders will forgive us.
Go look at last quarter earnings. They were 80 some pennies, but only 14 pennies from mining. the other 66 pennies was tax accrual profits. go figure.
the book value is inflated by the goodwill picture and the losses from getting this project off the ground and it was inflated or they wouldn't be writing it off. So how much of this quarters earnings are tax accrual profits and how much from selling off inventory is the next question on a DD analysis of the current report.