cde will be able to use the cash to continue its growth strategy this investor is in cde to be in oz's in ground and production that buys more assets, while they are available and cheap--- at some point we will get a meaningful dividend and have a much higher share price based on assets ,resources,production and earnings---,first majestic has also pursued a growth strategy without a dividend and has growth and a big project in orko-for now buying back shares and,securing money as debt to buy silver deposits near production in safe jurisdictions is ok for the investor in me-win the rochestor case or settle and keep building rochestor,,do just enough exploration at kensington to show potential, its got a long enough mine life , in bolivia, do just enough trenching to replace oz's, the resources are strong enough,,drill out palmarejo and reassure institutions of long life and replace oz's then pick up miquel or don ese at some point-
ed-Good comment. My view is that when we have a new surge of retail buying come into the PM mining sector, the dividend factor my come into play in a major way. It is a bright line that is easily noticed by uneducated buyers. But, your point is taken. The dividend can wait until such time as it would have a real impact on Coeur's share price.
Don ese is interesting if in fact ore mined outside of the Palmarejo boundary lines (as defined in the Franco/Nevada deal) is exempt from the 50% PLUS a 50k annual minimum arrangement. If that were the case, Coeur could mine and process Don ese ore free of obligation once the "minimum" condition is met in a couple of years. Of course, we don't know what the fine print has to say on that issue, nor do we know how practical it would be to transport that ore to the mill or even if DE is large enough to provide a long life mill feed. We do know that if Coeur had an alternate, N/F royalty free option, the company would be in a great bargaining position to buy back that agreement.
I see the Mexican Government is looking to put a royalty tax on new and existing mining ventures. Pending how much such a tax would cut into profits, it might put Paramount in a position of accepting less for the deposit. Likewise, I am not aware of how the F/N agreement treats such an increase in taxes. If Coeur had to eat the whole 100% of a tax on Palo revenue (Franco's share included), it could seriously hurt earnings. Lots of questions and few answers.
"My view is that when we have a new surge of retail buying come into the PM mining sector, the dividend factor my come into play in a major way. It is a bright line that is easily noticed by uneducated buyers"...............
Way too much hubris lpet. NEM, GG, and others already have a divi. So to bail you out, Coeur should employ another gimmick on the great unwashed? They tried it once with a share buy back. How's that goin'?
As far as retail buyers comin' in, well when we see retail brokers like TD, Scott TRd and others boasting of increasing NEW accounts when CDE has a shot. But retail will not come in now and CDE will not move unless the 'street' makes the first move securing first mover status. Look for insiders to purchase as an indicator.
Regarding Paramount, I say go for it as long as Coeur thinks it can favorably leverage the Franco fiasco. BTW, isnt PZG's mkt. cap about $300 M? Probably some speculative capital should be employed there.