I realize many on this board are likely frustrated and disappointed with management's decision to not repurchase the remaining 2% of the gold stream.  Personally, I am okay with that choice and even think it is in the best interest of the company and shareholders at this time.  The reasons being are that Brigus is only on the cusp of attaining steady state production and free cash flow is not exactly flowing in like water.  They have allocated a lot of capital towards further development, exploration, and will soon have to look into expanding the mill.  If they remove $12M for the 2% repurchase then it potenitally could put them into a real bind in the future since it would be atrocious to dilute equity below 90 cents and they are already leveraged with $80M in debt and D/CF over 1.3 and another debt financing would over extend them too much IMHO.

 

The other thing many fail to realize is that after news of repurchasing the initial 4% stream the stock proceeded to decline shortly afterwards.  So what makes everyone think that news of rebuying another 2% will have any positive material impact on the sp?  The fact of the matter is that Brigus is still streaming off gold at 6% minimum and whether that number is 6% or 8% is irrelevant to the eyes of the market.  If the thesis to stream off portion of your gold is viewed as negative by the market to begin with then the stock will always be penalized with a slight discount then regardless.

 

The correct strategy at this point is to continue lowering cost by achieving a higher "quality" of stabilized production and take the warrant money and future "excess" cashflow from the operational improvements and immediately apply it to paying down the high interest $30M debt as quickly as possible.  The market will eventually take care of the sp with improving metrics all across the board if this occurs.