Today Silvercorp Metals announced that it wanted to acquire up to 8.4 million shares. So, once again, the company is announcing a share buy-back program.
To remind my readers, Silvercorp announced three such programs: in 2014, 2015 and now. The first two programs were very ambitious - the company wanted to repurchase around 16 million shares but until March 31, 2016 Silvercorp repurchased a mere 4.0 million shares. Since that time no single share was bought back.
Now they want to purchase "only" 8.4 million shares but...will they do it?
As a matter of fact - they have a lot of cash:
source: Simple Digressions
As the chart shows, at the end of 3Q 2017 the company had cash of $99M. Taking the current share price of $2.51, Silvercrop could repurchase as many as 39.4 million shares (in theory).