Looks like a 50% haircut, $1.60-$1.75 would be an appropriate place to start purchases. We will see that level when the market comes down a bit further. Wonder if even at that price it is worthy of purchase.
Their big problem is the stupid margin account that they set up in early 2012. Whatever freaking moron decided to leverage up a commodity investment so that it depends on credit from a gawdarn bank should be hung/drawn/quartered and then fed to buzzards. If they actually used that margin account to pay dividends or return capital; then they should be put in jail -- and then hung/drawn/quartered and forced to take showers with syphilitic biker gangs. The managerial stupidity throughout the commodity/resources industry is simply mindboggling.
That said, as of 6/30, if they sell all their gold to shut down the margin account liability, it means roughly $3.70 in book value (most of which isn't "tangible book" but it doesn't eat that much cash or working capital either). I'm certain things have deteriorated a LOT since then as they haven't made any announcement about closing that margin account and they are still using (presumably) margin to buy back and cancel stock and commodity prices ain't going nowhere. Personally, even though I still hold some, I wouldn't buy more until they shut down all their margin garbage. Leverage is a killer of the stupid - and this management team and board has proven they are stupid.
Of course, I'm certain they blame everyone except themselves - ooh golly commodities are volatile and our private investments are illiquid whodathunk it - and will probably load up with free stock options at the bottom so they can pocket a fortune for themselves.
Management used the margin borrowings to pay the dividend for the last year. These guys are not very smart or maybe they are. The board of directors and officers have not purchased any shares of this company to my knowledge during recent years.
There is a reason this company has been in a downward price range. Its investments have been doing nothing over the last year, they borrowed money to pay dividends and the price of gold has fallen 25%. When you have no good news quarter after quarter it becomes difficult to find new investors that want to invest in the company and without demand for shares the price falls.
I would not be surprised to see this go lower without new investor demand.