The company has good mining operations in a relatively safe jurisdiction (Peru), recent results have been good, balance sheet is strong, nice dividend, solid growth expectations ... why isn't the stock moving up with the price of gold?
Are there any operational or management issues that you're aware of?
Thanks, Rick
**edited for error** Its small size, and some geographic risk (Ecuador) may turn off some investors and its last quarter EPS did miss estimates. It also raised $32M this year in a dilutive issue, when the money really was not needed (it had cash already on the books). Still, considering its positive qualities we think it should be doing better. Iolite Partners owns 8.7% and they are not happy either and are trying to add a board member. Red Oak no longer owns 12%. Considering the very weak share performance, we think holders would be very happy with a 'shake up' or takeover here. That may not happen, but it is good that grumpy shareholders are making waves. Other than the aforementioned, we are not aware of any other specific negative issues.