Bill Howald discusses the philosophy behind the Rye Patch share buy back.
I asked Bill to explain to us his philosophy behind the Rye Patch share buy back. Here is his very candid response;
“Thanks Al,
+1 Paul
Good point, Paul.
yep. a typo. but funny 😉
I’m interested. Can anyone give me their view on this stock. Thanks
Chris, we have more than a sufficient debate on this stock on yesterdays Doc & Big Al recap of Rye Patch. I just added 4 more segments myself in response to 2 of the smartest guys I know LPG and Matthew. I really respect their opinions and I did my best to unpack a different vantage point.
If you read the whole blog you’ll get more than enough thoughts on Rye Patch, but I also really recommend going to the “SEARCH” area of this site and type in Rye Patch to get the last 10-12 company updates & Audio interviews with Big Al on Rye Patch. Lastly, do what any wise investor should do and visit their website, read their press releases, view their corporate presentation, pull their financials, look at the land they bought, look at their drill results & proven/indicated/inferred resources, and action plan moving forward.
Good luck to everyone in their investing.
Matthew is one of the smartest guys you know?
Ha ha ha ha ha ha ha ha ha !!!!!!!!!
You need new friends I think. He has been obsessively religious and bullish both gold and miners since the top and probably lost his shirt all the way down! But you go man. Follow that guy at your peril. Even today he wrote that “Gold is still in an impressive uptrend when priced in the miners but I do believe that a long term top is in progress”.
An impressive uptrend? A long term top? Only 4 and a half years after the crash?
WTF!!!!
I know you guys look at things differently, but I think you are both very intelligent and are both a rare breed in the investing world because you come at things from such interesting vantage points.
Everyone has their own unique perspectives, and even in disagreeing you can learn a lot about your own views and crystalize one’s thinking.
Good luck to everyone in the investing approach they take and keep the good conversations going. Cheers!
Bird Listener, have you ever noticed that you’re the only one here who squawks when someone you don’t approve of is complimented?
You must lack the gene that allows one to feel embarrassment.
At least your theme song is kind of catchy…
https://www.youtube.com/watch?v=rwfmbXJEBtY
🙂 🙂 🙂
I approve of you. We just cannot agree on gold is all.
Boom boom Chris. There is the short answer.
Hello Bird,
OFF TOPIC
I shared this music link over the WE w. a friend… it brought back memories.
Your “boom boom Chris” made me think about it :
https://www.youtube.com/watch?v=llyiQ4I-mcQ
🙂
Best to you,
LPG
Great video. Must not be my generation though. That clip had 52 million views but I have never heard that song even once in my entire life (until today). I have to get out more often……
Bird,
I think the song is about 16 yrs old…
Very end of the 90’s if I remember correctly.
If I am not mistaken, the band is Dutch, FWIW.
Best,
LPG
Holland? Never been there. I spend all my time in the Middle East and points South. Probably not such a mystery it never made the playlist. You would really laugh if you heard the music that’s my usual day to day. It is a lot more Arabic. More ME fiddles and drums. And lots of moaning I cannot understand.
Bird,
I do listen to Arabic/ME music once in a while too 🙂 So I don’t think I’d laugh at the music you listen to.
Best to you,
LPG
Where did the get the royalty stream?
Hi Chris,
This is all explained on their website. Please go there to get answers to your questions.
Al
They correctly staked the claims on land the Coeur Mining used to have but had missed payments to the government and let their claims expire. Bill and his team were well within their rights to stake that land, and eventually came to an agreement with Coeur.
1) Originally, when Coeur realized they had messed up they tried to legally squash Rye Patch (David and Goliath style).
2) Next, Coeur made a low ball offer to buy Rye Patch, but they turned it down as silly [that impressed me and showed me Bill and his team had a more long term approach than a quick score].
3) After dragging out the court issue for over a year, I continually posted on this blog that legally Rye Patch should win that case, but everyone thought they were sunk.
4) Today Rye Patch has a Net Smelter Royalty and more friendly agreement with Coeur Mining (CDE) and they just received their most recent quarterly dividend of $1,462,300
Looks like David did alright, but Goliath (Coeur) still may buy them out one day. That is why I’d like to see a rhythmic buy-back that Bill is discussing with a small portion (less than 10%) of their overall ATM – the royalty stream. Over time (quarter by quarter) they’ll nibble away at the number of shares and it will make a gradual difference. If it was a one-time buyback, then I agree with LPG’s remarks on yesterday’s blog, that it wouldn’t move the needle much. However, over time, and prior to needing to raise money or do a JV to build out their mine, then when that day comes, as an investor, I’d like a much smaller float.
I feel like this was a true win for the little guy, and I invest periodically in Coeur anyway, so at one point I hope it all gets consolidated under one roof. If Rye Patch does go it alone, then at least for now, they’ll survive the remaining time left in the 4+ year bear and the downturn in metals pricing. I doubt many other of their peers Explorers (not small producers) will survive then next 6-12 months.
I could also see Barrick or McEwen Mining making Rye Patch an offer for buyout based on their land’s proximity to Lincoln Hill. Just a thought. (see their corporate presentation).
Sure they could,Excelsior
Thanks Excelcior
Glad to throw in my 2 cents : – )
Thanks for providing the platform where we can dissect these opportunities and get everyone’s thoughts on the topic. I enjoy a healthy debate, (as long as people don’t get into the name calling and insults).
Yes, I too would be interested in other opinions on this stock??
TTS,
As Excelsior mentioned, there’s been ample discussions about the name on Kereport over the past 2 days. So I guess skimming through the posts should provide you w. some potentially useful angles for your potential investment objectives.
More importantly, the company website is valuable for finding details about their current and future projects and also for enabling you to pull their financials, if you elect to have a look at them.
GL to you,
LPG
A big problem now is what are companies to do with excess cash. With interest rates near zero there is no way to put plentiful cash out on call without doing it through a member bank of The Federal Reserve system. Nobody is interested in their cash because rates are so low. What it all boils down to is The Federal Reserve is beaten. DT
I think it should say “why wouldn’t we invest in something that is real…”