The company should reward the shareholder with a share buyback using the new cashflows from the same expansion instead of a reverse split. The reverse split is historically a sign of last gasp, management having no other option to raise the stock price. This is not the case with CDE.

However, I do find it interesting that the stock price spiked the day after annoucement of the split. It does not make sense. Any idea why would be appreciated.

What Does Reverse Stock Split Mean?
A reduction in the number of a corporation’s shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same.

Investopedia explains Reverse Stock Split
For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It’s usually a bad sign if a company is forced to reverse split – firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.

As many as 75% of all stocks wind up trading lower after a reverse split.

So this is def. something to keep your eyes on, if this goes through — you might want to sell for a few months an buy back in at a cheaper price.