mclawhon,
I agree with your post that says we should give the new team time to review and reevaluate things and share your optimism that success will follow, but it will take time. However, when it comes to "follow the money" I think you need to reconsider some of it. The reason "someone" was pulling in cash and giving stock for payment is because the URHG management was in large part spending the cash on paying the bills instead of themselves, and thus getting stock in lieu of payment.
As far as I could tell, the officers and BoD were "all in" when it came to having skin in the game, I wouldn't want anyone to have a mistaken impression about where the money went. This was discussed at the shareholder meeting, and not even the most ardent critics of the company's progress and asset allocations seemed to think that was the case.
At the meeting I got the impression that the debate was about prioritizing URHG spending and that the criticism was that some shareholders thought spending to get gold out of Dun Glen had not been given enough emphasis or had taken too long to get to.
I think the change of management alone will add many weeks to the timeline that was presented at the shareholder meeting. I also suspect that the gold production estimates at that meeting were probably based upon a mine in full production; yet besides the management changeover, they said they had just moved to a new digging location (so the 3Q report should show almost no gold production). I don't know how fast it takes to ramp up to full production in 4Q at the new site.
Not only that, we now approach the winter months, which normally reduces production anyway, and some people at the meeting were also talking about the drought and how the lack of water was affecting the production. If I remember right, there was something about the water that caused a reduction in the number of days of activity.
However, the two lenders mentioned in the 3Q report were at the shareholder meeting. I assume the management team had given them the financial records that have now come out in the 3Q report and that the new team is keeping them abreast of what is going on in 4Q. So if in 4Q they still think it is a good investment, that would give me confidence.
My guess is that it will take the 4th quarter to get up to speed, and then get through the winter at some reduced rate of actual gold production. If they can do that and demonstrate to current or new investors they are producing gold, they should attract the necessary investment (the 3 million dollars discussed at the October 23 meeting) to get United Milling and Dun Glen to full capacity.
It was interesting that in the 3Q report they specifically mentioned the National Mine and also other future United Milling partnerships. That makes me think that if the URHG companies can be brought to full production potential this quarter, then those contracts would become very valuable to United, which means valuable to the URHG bottom line as well.
So while I am therefore bullish about spring production, I haven't got the slightest idea how or when any of this will impact the stock price. However, like you, I'm not selling my shares.
