One thing I forgot to mention is that NSU looking for an acquisition candidate might be counter-productive. WHY? NSU is one of the cheapest miners that I know of. That might be doubly so if their new drilling program pans out and the new area is as good as they think it is.
I know of a couple of other miners that are pretty cheap, but they are extremely small market caps, ie. $50MM or smaller.
What might be better is a fairly big buyback (15%+ outstanding shares) OR a big increase in the dividend. Why should management buy a company at a higher EV/EBIDTA ratio?
IF NSU was trading for $8 or $9/share, then it might make sense to trade mainly stock for lower valued company. Trading higher priced stock for lower valued company is a great way to go.
Heck, doubling the dividend in 2 years might get the stock moving, return cash to shareholders AND give management a valuable "currency" to trade for acquisitions.
I also agree that they should increase the dividend. It doesn't have to be a huge increase, raise it $.01/quarter, heck, even $.005 increase per quarter. Do it every year.
One of the big problems for mining stocks is that all the free cash flow gets reinvested in the mine(s). When a downturn inevitably comes, a lot of capital gets wasted. Just look at most of the big gold miners for a good example of this.
A dividend also instills capital allocation discipline on management. They know they've got to maintain the dividend...
Over long periods of time, a healthy dividend will also lower risk for investors. For a good example of this, look at Southern Copper (PCU). I know investors who get their initial investment back every quarter because of dividends!
A rising dividend also gets a lot of attention from investors. We should get a higher valuation....