Share buy back - The prime motive for a share buy back is if the company has surpus cash resources when the share price is depressed. However, by the time the company has surplus cash, the SP may be such that it is not economic to buy back shares. Also:-
- surplus cash should be focussed on developing assets such as Barry. Otherwise cash could be used to buy back shares and the company then may take on expensive debt to develop Barry.
- Cash not required in the company would likely give the most bang for the bucks to shareholders, if it was paid out as a dividend. This would positively re rate the SP valuation metrics.
- dilution is relative to the reason why share dilution has arisen. For instance, the market cap of Bonterra was less than $4m last week and where their shareholders have been crushed more than Metanor's, then in relative terms it could be accretive for Metanor to issue paper for Bonterra assets.